Sinisa Mali: ‘The 2023 budget will guarantee higher salaries and pensions’

The Minister of Finance, Siniša Mali, announced that the government will carry out a review of the 2022 budget and soon adopt the 2023 one, in order to provide additional funds to facilitate an increase in public sector salaries and pensions.

“No one could have imagined how much energy prices would increase. We projected a certain level of income and expenditure expecting that the coronavirus would subside and that 2022 would be a stable year, but then the war (in Ukraine) broke out,’ the minister said. Mali also said the Ministry is still working with last year’s budget, so a review is expected to be carried out after a new government is formed, in addition to the adoption of the 2023 budget.

“We want to secure enough money to increase (public sector) salaries and pensions in order to boost the living standard and have an increase that is higher than inflation,” the minister said.

Mali underlined that the priority is to save jobs and improve the citizens’ living standard by subsidising gas and electricity prices, but also noted that this cannot be done in the long run.

“As the President said, this winter will be cold, but next winter will be polar. Every country is experiencing an electricity shortage at the moment. It still hangs in the balance whether Serbia will be able to buy additional quantities,” Mali said and also commented on the National Bank’s (NBS) and ECB’s increase in benchmark interest rates: “When you increase interest rates, you increase the spending of money. The higher the cost of money becomes, the fewer people will also use it and therefore inflation will subside.”

On the other hand, he said, because of the increase in the cost of borrowing, there are fewer investments, which can potentially mean lower employment, and people, who have loans with variable interest rates, paying more for loan instalments. “Rising interest rates can push major economies into recession. This is an extremely complex situation,” the Minister said.

(, 09.09.2022)

This post is also available in: Italiano

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