Budget draft "neither social nor development-oriented"

BELGRADE The Serbian parliament on Tuesday begins its debate on the draft state budget for 2014. This budget is neither geared towards development, nor social in nature, but it does contain "some compromises," NIN weekly Editor-in-Chief Milan Culibrk says. Budget draft "neither social nor development-oriented" The proposed budget brings so far the highest deficit of 7.1 percent of GDP, which the finance minister explains as "responsible behavior," and the opposition sees as a continuation of the policy of borrowing. "This is the biggest deficit that we have had in the last few years. The question is what would have happened if we had not had savings, it turns out that the deficit would be over 9 percent of GDP," Culibrk says, adding that this would have made Serbia one of the countries with highest deficits in Europe. "And it is the only country in which the deficit is increasing from year to year, " he noted. When asked where more cuts could be introduced, Culibrk told B92 that it was no longer the question of where this could be done, but that it must be done. "It has to be done, and what might be a good side to this story is that we finally found out that there are 740,000 employees in the public sector," Culibrk said, and added that when the number was believed to be 600,000, up to 20 percent were mentioned as candidates for layoffs. "Now we can assume there are many more unnecessary workers in the public sector, who are a burden that an economy such as the Serbian cannot withstand. Not even German or Japanese economies would sustain this in not in the long run, let alone the stumbling Serbian economy. " Asked whether the budget can be referred to development-oriented, he said that "every year when the budget is adopted we hear it is both social and about development." "It seems to me that this budget is neither. It is not social because it foresees an increase of public sector salaries and pensions of 0.5 percent, which would be far under the growth rate of retail prices. On the other hand, it is also not about development, because there are no incentives," says Culibrk. He also noted that there are "some compromises" in the budget draft. "There are some guarantees for public companies for the future as well, and all this will have to be paid from the budget. No one believes that Srbijagas is able to service its obligations, no one believes that Galenika is able to repay its debts, no one believes that many other companies that are owned by the state will be able to repay loans that have been taken from banks. And the government guaranteed for most of these loans, so it will foot the bill, " concluded Culibrk. (B92) B92

Budget draft "neither social nor development-oriented"

The proposed budget brings so far the highest deficit of 7.1 percent of GDP, which the finance minister explains as "responsible behavior," and the opposition sees as a continuation of the policy of borrowing.

"This is the biggest deficit that we have had in the last few years. The question is what would have happened if we had not had savings, it turns out that the deficit would be over 9 percent of GDP," Ćulibrk says, adding that this would have made Serbia one of the countries with highest deficits in Europe.

"And it is the only country in which the deficit is increasing from year to year, " he noted.

When asked where more cuts could be introduced, Ćulibrk told B92 that it was no longer the question of where this could be done, but that it must be done.

"It has to be done, and what might be a good side to this story is that we finally found out that there are 740,000 employees in the public sector," Ćulibrk said, and added that when the number was believed to be 600,000, up to 20 percent were mentioned as candidates for layoffs.

"Now we can assume there are many more unnecessary workers in the public sector, who are a burden that an economy such as the Serbian cannot withstand. Not even German or Japanese economies would sustain this in not in the long run, let alone the stumbling Serbian economy. "

Asked whether the budget can be referred to development-oriented, he said that "every year when the budget is adopted we hear it is both social and about development."

"It seems to me that this budget is neither. It is not social because it foresees an increase of public sector salaries and pensions of 0.5 percent, which would be far under the growth rate of retail prices. On the other hand, it is also not about development, because there are no incentives," says Ćulibrk.

He also noted that there are "some compromises" in the budget draft.

"There are some guarantees for public companies for the future as well, and all this will have to be paid from the budget. No one believes that Srbijagas is able to service its obligations, no one believes that Galenika is able to repay its debts, no one believes that many other companies that are owned by the state will be able to repay loans that have been taken from banks. And the government guaranteed for most of these loans, so it will foot the bill, " concluded Ćulibrk.