Minister: Government "to discuss savings"

BELGRADE Finance Minister Mladjan Dinkic said on Monday that the coalition partners in the government "will discuss savings in the budget in the next two weeks." However, he did not specify whether salaries and pensions will be frozen. Minister: Government "to discuss savings" "We have to present our plans, we will have some kind of harmonization and after that come out with unified suggestions," Dinkic said at the parliament building, and added that expenditures must be reduced. Dinkic stated that the ratio of wages in the public and private sectors should be considered, which is something to which the Fiscal Council and the International Monetary Fund have already pointed. Wages in the public sector are higher than in the private, which feeds the public one, he said and announced that he will propose a change in the formula for the harmonization of salaries in the public sector. The minister also said that the private sector hires 1.7 million people, while the public employs 500,000. Asked whether there will be public sector layoffs, Dinkic said that this depends on a "case by case basis." He noted that it is possible that the state will stop managing certain public enterprises, eliminate some subsidies and expenses and thus make savings. As Dinkic put it, this does not necessarily have to imply privatization, but rather a long-term lease with management, and then recapitalization. "Directors of public companies who are doing well despite huge losses make a huge resistance to privatization, because the government keeps providing them with subsidies. This has to stop," the minister concluded. Mladjan Dinkic is seen in parliament on Monday (Tanjug) Tanjug

Minister: Government "to discuss savings"

"We have to present our plans, we will have some kind of harmonization and after that come out with unified suggestions," Dinkić said at the parliament building, and added that expenditures must be reduced.

Dinkić stated that the ratio of wages in the public and private sectors should be considered, which is something to which the Fiscal Council and the International Monetary Fund have already pointed.

Wages in the public sector are higher than in the private, which feeds the public one, he said and announced that he will propose a change in the formula for the harmonization of salaries in the public sector.

The minister also said that the private sector hires 1.7 million people, while the public employs 500,000.

Asked whether there will be public sector layoffs, Dinkić said that this depends on a "case by case basis."

He noted that it is possible that the state will stop managing certain public enterprises, eliminate some subsidies and expenses and thus make savings.

As Dinkić put it, this does not necessarily have to imply privatization, but rather a long-term lease with management, and then recapitalization.

"Directors of public companies who are doing well despite huge losses make a huge resistance to privatization, because the government keeps providing them with subsidies. This has to stop," the minister concluded.