Economics professor: Draft state budget is balanced

A Faculty of Economics professor, Ljubodrag Savić, says that the draft state budget for next year is balanced, with enough reserves for all the challenges that may arise in 2023.

“Expenditures are higher by 7.8 percent compared to the previous year, and we all know that the official inflation rate will be higher too. This means, in real terms, that budget allocations are lower compared to the previous year,” said the professor.

He underlines that it is extremely good that investments in infrastructure have continued and adds that that is one of the good decisions made by the government in the last few years.

“I hope that we will continue with this practice in the coming years as well. The construction of infrastructure facilities such as motorways and high-speed railroads is very important. Anyone who has any understanding of economic and social development knows this very well – the infrastructure does not yield financial results immediately, but lays the foundation for long-term development,” explained professor Savić.

He goes on to say that, on average, investments in infrastructure in the neighbouring countries stood at 27 or 28 percent of GDP, while Serbia’s investments used to be between 17 and 18 percent of the national GDP. Today, we are closer to the average of the regional countries.

Speaking about the energy sector, professor Savić says that the government has never managed to turn the Electric Power Industry of Serbia (EPS) into a profitable company, and believes that the best solution is to privatize EPS, as it was done with NIS, which, he claims, is one of the best companies in Serbia today.

(RTV, 05.12.2022)

This post is also available in: Italiano

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