Vujovic: Working towards sustainable level of public debt

Serbian Finance Minister, Dusan Vujovic says that austerity measures would be counterproductive and that Serbia is on its way to reaching a sustainable level of the public debt and deficit.

– This doesn’t mean that there are no problems to deal with, but it rather means that we have accomplished more than we had planned. We can look to the future with much more certainty – Vujovic said.

According to him, Serbia is on its way to reaching a sustainable level of the public debt.

Vujovic also says that an economic growth of 2.7% to 2.8% is expected this year.

Furthermore, he expects a record low budget deficit in 2017 of 1.7% of the GDP and adds that the share of the public debt in the GDP will be reduced to 72.8% at the end of next year.

Vujovic goes on to say that next year’s budget doesn’t envision tax and contribution cuts, and  that the ban on employment in the public sector will remain in effect.

– We are gradually reducing the discrepancy between the budget revenue and expenditure which means that the difference in the purchasing power between our citizens and citizens of European countries will be reduced as well – Vujovic said and added that the economic growth would lead to a reduction of the share of civil servant salary costs in the budget, with the aim of having them be around 8% of the GDP.

The projected inflation for 2017 will be 2.4%, due to the growth of certain prices that are controlled by the state, Vujovic pointed out.

– The public debt in 2017 should be 72.8% of the GDP, which is only 0.7% less compared to this year, but it’s important that we are on our way of reducing it to 60%,  in line with the Maastricht rules – he concluded.

(eKapija, 04.12.2016)

http://www.ekapija.com/website/en/page/1613024/Serbia-on-its-way-to-sustainable-public-debt-level-No-room-for-tax-and-contribution-cuts-in-2017

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