Eurasia Press & News
The Serbian government has announced savings of €1 billion as part of its economic stability plan.
Prime Minister Mirko Cvetkovic said on Tuesday that 85 per cent of budget savings will be generated by cutting costs and 15 per cent by increasing revenue.
“Besides cheaper public administration, the new package of economic measures will also guarantee social responsibility and maintain the standard of living, stimulate production and employment, and give support to public works and capital investment in infrastructure,” he said.
Some of these measures, he added, were temporary because of the economic crisis, while others were strategic and their goal was to increase the efficiency of public administration.
The new measures include cutting ministry spending by a quarter, generating €430 million in savings, a freeze or cuts to public sector salaries and 10 per cent of jobs in public administration being axed.
Among other measures are increases in fuel excise and a temporary tax on mobile phone charges, expected to bring in €86mn altogether.
Albert Jaeger , head of the IMF mission to Serbia, told daily Blic that there was no deadline for the new measures to be adopted.
“We’ll be able to react fairly quickly once the government takes its decision and begins to take reliable steps towards filling the budgetary hole,” said Jaeger.
