"Public sector wages and pensions hike could be premature"

"Public sector wages and pensions hike could be premature"

The Fiscal Council's report on current fiscal trends reads that the budget part of the fiscal consolidation was proceeding well for the time being, but that the reform part, which was crucial for the lasting improvement of Serbia's public finances, was seriously behind schedule.

The Fiscal Council added that the successful implementation of reforms should improve the structure of public expenditures, lower fiscal risks in the future and provide support for high and sustainable economic growth in the medium run in other words, enable the lasting health of Serbia's public finances.

"The results have so far shown that the accomplishing of narrow fiscal goals went well and, in many aspects, even quicker than planned. However, the very modest progress in the implementation of the reform part of the fiscal consolidation is far from satisfactory," the Fiscal Council stated.

The Council added that it was very dangerous that an opinion was being formed in a part of the general public, and even professional public, that the fiscal consolidation was practically done, i.e. that the problems in our public finances had been solved with the significant lowering of the state deficit.