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Serbia: New Budget Turning Point for Economy

Published: December 9, 2013; 17:35 · (Vindobona)

Next year’s draft budget is, according to Prime Minister Ivica Dacic the opportunity for a new beginning and a turning point in a responsible approach to running the Serbian economy.

Serbia: New Budget Turning Point for Economy / Picture: © Wikipedia / Micki

During the presentation of the budget, Dacic said the draft budget covered all aims claimed by the government. Dacic pointed out that mistakes have been made in the past. "In the years behind us, this seemingly simple task was not done in the right way, and we feel the consequences of that even today, and that is why the government is now determined not to repeat such mistakes again, and the government reshuffle also proves that," he said.

According to the Prime Minister the measures were taken to stay away from “the Greek scenario”. The consolidated budget deficit will come at 7.2 percent of GDP, instead of 9.0 percent. Moreover, public debt rate will remain below 70 percent, instead of 80 percent. Dacic pointed out that the fiscal and structural measures will ensure economic growth of one percent. The reasons for this insignificant growth rate are too few investmentes made and a weakening consumption power as well as increasing budget expenditures, according to a press release by the Serbian parliament.

Nonetheless, the Serbian government will focus on introducing reforms and enhance foreign investments. Dacic stressed that one of his aims was to tackle the grey economy. “the mechanism of the Serbian economy has to be kick-started now", he claimed.