VUJOVIC: New employments and economic growth for higher standard of living in 2017

If a higher economic growth and a better income dynamics are achieved, we might easily end 2017 with a fiscal surplus, estimated Minister of Finance Dusan Vujovic in his interview for the New Year’s issue of Blic.

The three biggest successes in 2016 are the fiscal deficit, three times lower than planned, the public debt, which has begun to drop, the growth of GDP of 2.7%, considerably higher than planned, as well as the fact that the budget proposal for 2017 featured a historically low deficit of 0.6% of GDP, Vujovic says.

Talking about wishes for 2017, Vujovic said that they were related to new employments and economic growth for a higher standard of living, the final completion of structural reforms, resolving the issue of enterprises operating with losses and the transformation of the Tax Administration.

When asked whether raises of pensions and salaries in the public sector in 2017 will negatively affect the recently re-established stability of public finance in Serbia, Vujovic says that this won’t happen if the process is carried out with due care, based on achieved results and within realistic and sustainable fiscal frameworks.

– The growths with which we entered the preparation of the 2017 budget show this the best. If a more dynamic GDP growth is achieved next year, as well as higher employment rate and necessary rationalization in the public sector, there will be more than enough room for a real increase in pensions and salaries in the public sector without jeopardizing the fiscal position in the coming years, with a possible reduction of payment taxes and contributions even – Vujovic says.

– The point is for the economic growth based, above all, on new jobs in the private sector to secure a strong enough foundation for solid pensions and salaries in the public sector within the framework provided by the Law on Budget System, 11% of GDP for pensions and 8% for salaries – Vujovic said.

Ministarstvo finansija Republike Srbije

Poreska uprava Srbije

Ministry of Finance

Dusan Vujovic

fiscal deficit

fiscal surplus

public debt

growth of GDP of Serbia

budget for 2017

employment

reform of public sector

Tax Administration

growth of salaries and pensions

payment taxes and contributions