3,000 dinar reward for each vaccinated person will cost Serbian budget dearly

According to economic experts, Serbian public finances will suffer once the announced 3,000-dinar-incentive for citizens who have been vaccinated or will be vaccinated by 31 May is paid out.

In addition to having to take out a new loan to cover this expense, experts believe that the President of the State, Aleksandar Vučić, is thus violating his constitutional powers.

The President of Serbia announced that, on top of the previously provided financial assistance for Serbian citizens who are 18 and older, all citizens who are vaccinated and are over 16 years old, or who have been vaccinated with one or two doses and all those who will be vaccinated with at least one dose by 31 May, will receive an additional 3,000 dinars from the state.

“I am shocked that the President comes up with such proposals, considering that he personally cannot dispose of the funds from Serbia’s budget as he wishes. His constitutional powers, according to my interpretation, do not envisage such a possibility,” economic expert and former NBS governor, Dejan Šoškić, underlines and adds that Vučić should not stimulate people to get vaccinated with money, but through education and raising awareness about the benefits of vaccination.

“It is not a way to spend budget funds, which I assume come from reserves. This is very problematic. As a country, we will have to take on additional loans. Our debt-to-GDP ratio already exceeds 60 per cent, so this is not a good direction for our public debt. Such measures can only further burden our country’s public finances,” Šoškić believes.

Ivana Pavlović of Nova Ekonomija believes that the state will have to borrow that money: “We will probably spend some of the money if there is something left over from the sale of Komercijalna Banka, and then we will have to borrow the rest and repay that money sooner or later,” says Pavlović, wondering whether it is wise to give 3,000 to everyone or only to those who are financially struggling.

(Nova, 07.05.2021)



This post is also available in: Italiano

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