PM: No bankruptcy, but recovery strategy needed
Ivica Dačić has said that Serbia is not facing bankruptcy and it has no problems with liquidity, but that it must adopt a strategy for the economic recovery.
Monday, 24.06.2013.
11:31
BELGRADE Ivica Dacic has said that Serbia is not facing bankruptcy and it has no problems with liquidity, but that it must adopt a strategy for the economic recovery. Serbia has to enter a public sector reform, and in this respect the government will take energetic short-term and long-term measures in the interest of the citizens, the prime minister said. PM: No bankruptcy, but recovery strategy needed The Serbian prime minister and the members of his office conferred on Saturday on the austerity measures and the public sector reform with representatives of the Serbian Chamber of Commerce, the National Council for Economic Recovery and trade unions. Dacic reiterated after the meeting that there will be no freezing of salaries and pensions, and that the incomes in the public sector will not be able to grow above the level of incomes in the economy. He said that the budget revenues are smaller than planned, adding that the budget deficit has to be reduced by around 4.7 percent of the GDP and that therefore the budget review will follow. The shortage of budget revenues can be solved by new indebtedness, which the government does not want in order to avoid further increase of the public debt and the budget deficit, he said. Dacic announced that the government members will soon confer with members of the Fiscal Council and other important representatives of the society on the austerity measures and the public sector reform. Serbian Minister of Economy and Finance Mladjan Dinkic said after the meeting that the government has received support from businessmen and trade unions for the proposed austerity measures. “We have agreed that the government should not draft important systemic laws on its own, but rather in cooperation with the unions and businessmen, which primarily refers to the amendments to the Labor Law,” he said. Dinkic said that everyone supported the amendments to the Law on Planning and Construction and cutting red tape, and added that there will be no tolerance in terms of financial discipline and grey economy. Dacic addresses reproters after the meeting (Tanjug) Tanjug
PM: No bankruptcy, but recovery strategy needed
The Serbian prime minister and the members of his office conferred on Saturday on the austerity measures and the public sector reform with representatives of the Serbian Chamber of Commerce, the National Council for Economic Recovery and trade unions.Dačić reiterated after the meeting that there will be no freezing of salaries and pensions, and that the incomes in the public sector will not be able to grow above the level of incomes in the economy.
He said that the budget revenues are smaller than planned, adding that the budget deficit has to be reduced by around 4.7 percent of the GDP and that therefore the budget review will follow.
The shortage of budget revenues can be solved by new indebtedness, which the government does not want in order to avoid further increase of the public debt and the budget deficit, he said.
Dačić announced that the government members will soon confer with members of the Fiscal Council and other important representatives of the society on the austerity measures and the public sector reform.
Serbian Minister of Economy and Finance Mlađan Dinkić said after the meeting that the government has received support from businessmen and trade unions for the proposed austerity measures.
“We have agreed that the government should not draft important systemic laws on its own, but rather in cooperation with the unions and businessmen, which primarily refers to the amendments to the Labor Law,” he said.
Dinkić said that everyone supported the amendments to the Law on Planning and Construction and cutting red tape, and added that there will be no tolerance in terms of financial discipline and grey economy.
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