Government: Spending cuts in public sector

BELGRADE The government announced on Wednesday that it will introduce austerity measures in the public sector and reduce the number of employees with the administration. The government also intends to "stimulate the growth of the private sector, and streamline public companies." Government: Spending cuts in public sector According to the proposed measures, all ministries should save around RSD 32.1 billion in total, the Ministry of Finance and Economy being most affected - it will have to save around RSD 6 billion, including RSD 2.3 billion in subsidies. The proposed measures stipulate that the Ministry of Agriculture will have to make spending cuts worth RSD 3.3 billion, including RSD 2.35 billion in subsidies. According to that plan, the Interior Ministry will introduce spending cuts worth RSD 3.16 billion, RSD 1.35 billion only in expenditures for employees. The Ministry of Education should cut its spending by around RSD 3 billion, and the Ministry of Labor by RSD 3 billion, all cuts relating to measures aimed at encouraging employment. The Ministry of Regional Development should make spending cuts worth RSD 2.85 billion, RSD 1.6 billion only in transfers to local authorities. The Ministry of Defense will have to reduce its spending by RSD 2.75 billion, the Ministry of Transport RSD 2.73 billion, including 1.5 billion in subsidies for the public company 'Serbian Railways'. The planned spending cuts in the State Directorate of Commodity Reserves amount to RSD 1.54 billion, out of which RSD 1.4 billion will be saved on commodity reserves alone. The government also announced that it will streamline public companies, by reducing direct and indirect subsidies and imposing strict control when granting guarantees. These are the special austerity measures in the public sector, as part of the measures aimed at stabilizing the budget, which Serbian Minister of Economy Mladjan Dinkic presented in the Serbian government on Wednesday. By July 31, all public sector employees will be recorded, and by the end of September, complete public companies' workforce will be registered in order to make spending cuts, Dinkic said. The government should impose a strict control of salaries and workforce by introducing a single register of all employees and all direct or indirect budget beneficiaries and local authorities, organizations of mandatory social insurance, public agencies and others that are financed by the government, and as of September 30, of all public companies at national and local levels. All who fail to submit the data by July 31 will be denied the August salaries, Dinkic said. By the end of September, an analysis will be completed concerning the needed number of employees and rationalization of public services, the duty that the Serbian Progressive Party (SNS), as the leading party in the ruling coalition, took on itself. As of January 1, the government will launch a centralized mechanism for salaries at national level, Dinkic said, adding that the model has already been implemented in Croatia and will help make spending cuts of 10 percent. Special austerity measures will include changes to the laws that regulate employment. Credit guarantees will be granted only to those public companies that have withdrawn over 70 percent of the previous loans. The public company 'Srbijagas' will have to meet its liabilities without the state's assistance. In the future, the state will not cover costs arising from unsecured deposits, as was the case with Nova Agrobanka (EUR 120 million) and the Development Bank of Vojvodina (EUR 80 million). Mladjan Dinkic (Tanjug) Tanjug

Government: Spending cuts in public sector

According to the proposed measures, all ministries should save around RSD 32.1 billion in total, the Ministry of Finance and Economy being most affected - it will have to save around RSD 6 billion, including RSD 2.3 billion in subsidies.

The proposed measures stipulate that the Ministry of Agriculture will have to make spending cuts worth RSD 3.3 billion, including RSD 2.35 billion in subsidies.

According to that plan, the Interior Ministry will introduce spending cuts worth RSD 3.16 billion, RSD 1.35 billion only in expenditures for employees.

The Ministry of Education should cut its spending by around RSD 3 billion, and the Ministry of Labor by RSD 3 billion, all cuts relating to measures aimed at encouraging employment.

The Ministry of Regional Development should make spending cuts worth RSD 2.85 billion, RSD 1.6 billion only in transfers to local authorities.

The Ministry of Defense will have to reduce its spending by RSD 2.75 billion, the Ministry of Transport RSD 2.73 billion, including 1.5 billion in subsidies for the public company 'Serbian Railways'.

The planned spending cuts in the State Directorate of Commodity Reserves amount to RSD 1.54 billion, out of which RSD 1.4 billion will be saved on commodity reserves alone.

The government also announced that it will streamline public companies, by reducing direct and indirect subsidies and imposing strict control when granting guarantees.

These are the special austerity measures in the public sector, as part of the measures aimed at stabilizing the budget, which Serbian Minister of Economy Mlađan Dinkić presented in the Serbian government on Wednesday.

By July 31, all public sector employees will be recorded, and by the end of September, complete public companies' workforce will be registered in order to make spending cuts, Dinkić said.

The government should impose a strict control of salaries and workforce by introducing a single register of all employees and all direct or indirect budget beneficiaries and local authorities, organizations of mandatory social insurance, public agencies and others that are financed by the government, and as of September 30, of all public companies at national and local levels.

All who fail to submit the data by July 31 will be denied the August salaries, Dinkić said.

By the end of September, an analysis will be completed concerning the needed number of employees and rationalization of public services, the duty that the Serbian Progressive Party (SNS), as the leading party in the ruling coalition, took on itself.

As of January 1, the government will launch a centralized mechanism for salaries at national level, Dinkić said, adding that the model has already been implemented in Croatia and will help make spending cuts of 10 percent.

Special austerity measures will include changes to the laws that regulate employment.

Credit guarantees will be granted only to those public companies that have withdrawn over 70 percent of the previous loans.

The public company 'Srbijagas' will have to meet its liabilities without the state's assistance.

In the future, the state will not cover costs arising from unsecured deposits, as was the case with Nova Agrobanka (EUR 120 million) and the Development Bank of Vojvodina (EUR 80 million).