Sunday , February 28 2021

The government approved the bill on the budget

The budget is developmental, realistic and balanced, aimed at improving citizens' quality of life and investing in capital projects, as well as encouraging the further development of the economy, the government's Office for Media Co-operation announced.

The proposed budget law, which is submitted to the parliamentary procedure, provides for a total revenue and revenue for the following year of RSD 1,246.2 billion, while expenditure and costs amount to RSD 1,269 billion.

Finance Minister Sinisa Mali says that when the budget was drafted, the state heard their economy and their proposals and a set of tax laws, the responsible minister would defend next week in front of the deputies.

"The 2019 budget is designed to continue the process of developing our economy in the future," Mali said, citing three key budget features for next year.

The first characteristic is, as it says, the increase in the living standards of Serbian citizens.

"The budget for 2019 is an increase in all pensions, on average, from 8 to 13 per cent compared to 2014. Never the largest pensions in Serbia were today and will be in 2019. If we were to continue we are growing up in this way in 2019, there is still room for increased pensions, "says Mali.

It recalls that the budget is adapted to support public sector wage growth by 7 to 12%.

"This increase starts on 1 January 2019 and that these money and wages are also on the budget," Mali said.

From January 1 of the following year, he recalls that the minimum labor cost will increase to over 27,000 dollars.

"All workers in Serbia will see the impact of the reforms that have been implemented," the minister said.

The second feature of the budget, he explains, is the highest amount earmarked for capital investment.

"And that is what the Financial Council and the IMF insist on," Mali said, adding that about 220 billion billion have been provided for capital investment, bridges, tunnels …

He notes that when it comes to reducing the wage bill and abolishing unemployment benefits to the employer by 0.75%, which comes into force on 1 January 2019, the word is "a historic decision that has been waiting for decades".

"For decades, it is said that the pressure and the burden of pay will be reduced, and we are doing it here and starting in 2019," the minister said.

He states that he will support the Convention along with the Budget Law and a number, says reform laws, which contain mainly tax incentives for investment in R & D, incentives related to investment in equipment and machinery …

GDP growth of 4.5%, decrease in unemployment

He also recalled the government's economic performance and said that in the first nine months, GDP growth was 4.5%.

"The unemployment rate is lower than in 2013. When it was over 25%, now the unemployment rate is below 12%. In the third consecutive year we have a surplus in our budget and by the end of the year the surplus will be 0, 6% of GDP, about 28 billion billion. We have retained and earned more than we spent, 28 billion billion.

Serbia, for the third consecutive year, adds, attracts more than 50% of foreign direct investment in the region.

Public debt in relation to GDP also declines compared to previous years, when it was almost 80 percent, "we are already now at 56 percent with a further downward trend," the minister said.

"We have heard the economy, companies that are already working in Serbia and are planning to come to Serbia. We have set a set of laws that will allow new jobs by opening new factories in our country."

Mali says that when looking at the full budget and plans for next year, the "budget for 2019 is fully balanced" and includes a social aspect "linked to raising living standards by increasing pensions and wages," and , on the other hand, has a "strong growth track" that will ultimately allow the economy to be more competitive and more attractive and thus to achieve higher growth in 2019.

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