Mali for TV Prva: 23 billion for new measures; "Strength of our finances" VIDEO/PHOTO

Deputy Prime Minister and Minister of Finance Siniša Mali told TV Prva that the public finances of the Republic of Serbia are completely stable.


Thursday, 08.06.2023.


Mali for TV Prva: 23 billion for new measures;
Foto: Printskrin/TV Prva

Mali for TV Prva: 23 billion for new measures; "Strength of our finances" VIDEO/PHOTO

Mali further explained the measures presented last night for TV Prva.

"It is about a set of measures that are primarily aimed at raising the standard of living of the citizens of Serbia. And in conditions that I would say are the conditions of the biggest, most difficult economic crisis, global economic crisis ever," he said.

"So, it is a set of measures that, on the one hand, raise the standard of living of the citizens of Serbia, but on the other hand, show the strength of our economy, show the strength of our public finances, and essentially justify and confirm the correctness of our economic policy that we have been implementing for ten years," said Mali.

Higher wages in the public sector

"The first measure is to raise wages in the public sector from September 1, that is, the beginning of the new school year. 5.5% for all employees in education. In addition, therefore, plus nurses, caregivers in social welfare homes. And that is the first step of raising salaries since September of this year," he added.

"For them and all other employees, there will be a salary increase in January of at least 10 percent. And if you look now, we have raised salaries in the public sector by 12.5% since January 1 this year, 5.5% in September and 10% next January. That's more than a 30.6 percent salary increase in education and for medical workers. For the others, it's 24 percent," he added.

"We are talking about salary increases far above the inflation limit," he emphasized.

Pensions are also growing. Total growth 55%

"The second measure is raising pensions. And this is a phenomenal measure and very important for our oldest fellow citizens. From October 1st, we will start raising pensions. So, an extraordinary indexation of pensions of 5.5% follows, from January 1st, according to the so-called Swiss formula, at least 14.5% more. It is already somewhere around 20.3 percent," said Mali.

"Last year, we increased pensions by 5.5% at the beginning of the year, so there was an extraordinary indexation of 9% in November, and then there was an additional increase of 12.1% from January this year. Now it is 5.5% from October, plus 14 .5% at least from January 1. Do you know how much that pension increase is in two years? As much as 55.8-56 percent," Mali explained.

Mali added that it is "far, far above the inflation rate and a truly par excellence measure that is in the interest of protecting the standard of living and raising the standard of living of our oldest fellow citizens. With this measure, we will have an average pension of 390 euros already next year."

"At the same time, we are implementing both measures and we do not disrupt fiscal stability," he emphasized.

Mali also spoke about helping the youngest

"We want to support mothers and single fathers. Each child up to the age of 16 will receive 10,000 dinars. The application will be very simple. The application will take place on the portal of the Treasury Administration. Mothers should enter their identity card number and their social security number, social security number for each child and to choose the bank where they want the aid to be paid. The system will also provide for a method of application for single fathers. Recipients of financial social aid will be automatically disbursed".

About 11.9 billion dinars will be spent for that.

"Last year, we helped young people between the ages of 16 and 29 three times. The first was, if you remember, 100 euros, then another 100 euros. 100 euros was given in February, then in June, and then 5,000 dinars at the end of the year. Therefore, we are really trying to show the citizens of Serbia that our economy is stable, that our economy is still strong," he added.

Where does the money for all the measures come from?

"For this year, we need 23 billion dinars for these measures. We planned to make a deficit, that is, a deficit in the budget, according to the plan and agreement with the International Monetary Fund, of 120 billion dinars. Do you know how big the deficit is, how big the deficit will be at the end in the fifth month? 35 billion. We saved 85 billion there," Mali said.

"If you remember, we gave a part for additional motivation, i.e. stimulation for farmers, a part for investments, since as you can see, not a single investment in Serbia has stopped, railways, factories, sewage networks, etc. are being built and worked on. And with third parties. We have room for this. There is no question of any additional extra borrowing, we are not changing our debt plan until the end of the year. We want to share some of what we have saved with the citizens of Serbia," he added.

Mali also addressed the criticism.

"Let me tell you, I've heard some criticism, several times. They say, it's not Vučić's money, it's the people's money. So, wait, people, what happened in 2008, 2009, 2010, 2011? I don't remember sharing the same public money with the citizens?", he asked.

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