Talks on new savings measures and budget rebalance start – Government still without decision on salaries and pensions cuts

The President of the Government of Serbia, Aleksandar Vucic, has outlined today at the meeting with the permanent IMF representative in Serbia, Deheng Kim, that Serbia must continue structural reforms and expressed expectations that the agreement with IMF will be achieved.

He outlined that IMF representatives in the talks with governmental representatives in Serbia did not propose specific measures necessary for fiscal savings but the representatives of the Government of Serbia met their permanent IMF’s representative with measures focused on savings in budget and public debt stabilization as well as with measures of economy revival, the Office for cooperation with media announced.

The IMF’s attitude is that all measures which will be adopted should be widely accepted in social sense so that they would be sustainable and it was thus advised that the package should protect socially endangered, it was concluded at the meeting.

The Minister of Finance, Dusan Vujovic, the Minister of Trade, Zeljko Sertic, the Minister of governmental administration and local self-government, Kori Udovicki, the Minister of Labor and Social Affairs, Aleksandar Vulin and the Governor of the National Bank of Serbia, Jorgovanka Tabakovic, attended the meeting.

This way, talks on new savings measures and budget rebalance within the Government, IMF reps and social partners started.

The Prime Minister Vucic, with an announcement that Monday could see the start of conversations on budget rebalance and salaries and pensions decrease, said that it refers only to public sector and that private sector will have no additional taxes. He could not say how cuts will be carried out because, as he said, Monday will see the discussions within the Government and IMF.

The Serbian Employers’ Union stepped out in public with the third suggestion where salaries in public sector would decrease by 25 and pensions by 20%. Only this way decrease would have effects.

As Blic reports, Vucic postponed the decision on potential salaries decrease for the next weekend when he gets back from China.

The newspaper reports that proposals of other savings measures in budget and basic budget rebalance guidelines draft which should be in assembly procedure by September 15 are ready. Measures will be presented after Vucic returns, i.e. next weekend, Blic reports.

Vlada Republike Srbije

Ministarstvo finansija Republike Srbije

Ministarstvo privrede Republike Srbije

Međunarodni monetarni fond - MMF Beograd

Ministarstvo državne uprave i lokalne samouprave Republike Srbije

Ministarstvo za rad, zapošljavanje, boračka i socijalna pitanja Republike Srbije

Narodna banka Srbije Beograd

Aleksandar Vucic

salaries cuts

pensions cuts

pensions

salaries

salaries public sector

salaries in public sector

savings measures

fiscal consolidation

IMF

Dusan Vujovic

Zeljko Sertic

Kori Udovicki

Aleksandar Vulin

NBS

Jorgovanka Tabakovic

public debt

Deheng Kim

budget rebalance

budget of Serbia