Public sector "to bear biggest burden," minister says

Minister of Finance and Economy Mlađan Dinkić said Wednesday that a set of anti-crisis measures to be taken "do not imply cuts in salaries and pensions."

Izvor: Tanjug

Wednesday, 05.06.2013.

16:55

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Zajecar Minister of Finance and Economy Mladjan Dinkic said Wednesday that a set of anti-crisis measures to be taken "do not imply cuts in salaries and pensions." The greatest burden will fall on the public administration and employees in public enterprises, especially those operating with losses, he warned. Public sector "to bear biggest burden," minister says “Teachers, doctors, police and army will be in a better position than the public administration and public enterprises, because today, the public administration and public enterprises receive 20 percent higher wages than the private sector, which is untenable,” Dinkic told reporters in Zajecar, eastern Serbia. Dinkic said that the Finance and Economy Ministry has submitted a proposal of structural reforms in the public sector and of measures to stop the Serbia's budget deficit at 4.6 percent of gross domestic product (GDP), which he believes is a sustainable option and appropriate to the current economic situation in Serbia. “The idea is to protect those who have relatively low incomes, and on the other hand to reduce some unnecessary and unproductive expenditures,” said Dinkic. Dinkic pointed out that the program will be based primarily on reducing state spending and boosting the economy, as a larger GDP cannot be achieved without investment. Dinkic expressed the hope that a consensus on these measures will be reached very quickly, not only in the government, but in the entire public sphere, including trade unions and employers. The minister hopes that the measures will be finally agreed in about seven days, after internal government discussions and talks with trade unions, employers and Serbia's Fiscal Council. The set of measures should be submitted to the parliament at the end of June and bills to support the measures should then be voted on, he said. Dinkic stressed that Serbia is not facing bankruptcy and that it will be easy to stabilize public finances as the proposed program of measures is making this possible, adding, however, that the biggest challenge remains how to employ young people and bring more investors. (Tanjug) Tanjug

Public sector "to bear biggest burden," minister says

“Teachers, doctors, police and army will be in a better position than the public administration and public enterprises, because today, the public administration and public enterprises receive 20 percent higher wages than the private sector, which is untenable,” Dinkić told reporters in Zajecar, eastern Serbia.

Dinkić said that the Finance and Economy Ministry has submitted a proposal of structural reforms in the public sector and of measures to stop the Serbia's budget deficit at 4.6 percent of gross domestic product (GDP), which he believes is a sustainable option and appropriate to the current economic situation in Serbia.

“The idea is to protect those who have relatively low incomes, and on the other hand to reduce some unnecessary and unproductive expenditures,” said Dinkić.

Dinkić pointed out that the program will be based primarily on reducing state spending and boosting the economy, as a larger GDP cannot be achieved without investment.

Dinkić expressed the hope that a consensus on these measures will be reached very quickly, not only in the government, but in the entire public sphere, including trade unions and employers.

The minister hopes that the measures will be finally agreed in about seven days, after internal government discussions and talks with trade unions, employers and Serbia's Fiscal Council.

The set of measures should be submitted to the parliament at the end of June and bills to support the measures should then be voted on, he said.

Dinkić stressed that Serbia is not facing bankruptcy and that it will be easy to stabilize public finances as the proposed program of measures is making this possible, adding, however, that the biggest challenge remains how to employ young people and bring more investors.

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