"Pensions, salaries to increase by end of year" - PM

"Pensions, salaries to increase by end of year" - PM

The government's plan is that educational workers get the highest raise, and be followed by health care workers, doctors, nurses, soldiers, police officers and social workers.

"They are among the 360,000 people who can expect that their incomes will be significantly boosted," the prime minister said, adding that salaries of 19.4 percent employees were not reduced, but that they can also expect a raise.

The increase will not be just symbolic, but it will certainly be lower than what the IMF would allow, he noted, and pointed out he wants the security of public finance, security for investors.

"We will increase salaries and pensions in 2016 as well," Vucic told a press conference.

He also said on Wednesday that Serbia's GDP growth in 2015 will be between 0.5 and 1 percent, and the national budget deficit will stand at 2.87 percent of GDP by the end of the year so there is no reason for a budget review.

This could be the first year in the history of Serbia in which there will be no budget review, Vucic stated.

“If only public enterprises had not cheated in relation to coefficient and pay increases, the results would have been even better,” the prime minister said, noting that the national budget deficit would total 2.87 percent of GDP by the end of the year.

“If everything goes according to the plan, and we have a better result than the projection we set with the IMF, the national budget deficit will be at 2.87 percent of GDP by the end of the year,” Vucic said.

Vucic said that the current budget deficit amounts to RSD 25 billion, which is in accordance with the plan that Serbia reached with the IMF.

He said that Serbia registers a primary surplus every month, noting that the country's economic development seriously accelerated in the second quarter.

Vucic expects an increase of economic activity between 0.5 and 1 percent of GDP this year.

“This is exactly what I said almost one year ago,” the prime minister said.

"Good offer"

The Serbian government will sell Telekom Srbija provided it gets a good offer and a partner of quality, Serbian Prime Minister Aleksandar Vucic said on Wednesday.

During the press conference, Vucic said that the government would not use the money acquired via Telekom's sale to cover the budget deficit.

They would use half of the sum to reduce public debt and the other half would be allocated to sizeable investments, said Vucic.

Srbijagas does not owe Gazprom a penny for the gas quantities that are being delivered as of the onset of the heating season 2014-2015, he said.

In addition, compared to the same period last year, Airport Nikola Tesla has recorded a seven times greater profits in the first five months of this year, Vucic said adding that Air Serbia has also recorded a profit increase.