"Spending cuts will have no effect without growth"

World Bank Country Manager for Serbia Tony Verheijen says the fiscal consolidation will not yield results by itself unless it is followed by economic growth.

Izvor: Tanjug

Wednesday, 04.03.2015.

15:53

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(Tanjug)

"Spending cuts will have no effect without growth"

"There is no magic wand to achieve this. We attach prime importance to reforms of public enterprises. They are important, not just because of economic growth, but also the need to reduce the number of firms that get state subsidies," he was quoted as saying by Tanjug.

Serbia's public sector is bloated, and the part of the budget earmarked for salaries too big, he added.

The WB and the EU are willing to assist Serbia in resolving the problems, he said.

There are projects in Serbia, but their implementation is poor, Verheijen said, pointing to several infrastructure projects and the construction of the highway.

According to the WB country manager for Serbia, the agriculture has the potential of encouraging growth in Serbia.

“Will Serbian citizens benefit from the growth? If 60 percent of them would have some gain, and other 40 percent remain poor, that would mean we have not succeeded," Verheijen concluded.

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