VUČIĆ: Measures for reducing fiscal deficit by the end of September

Source: Blic Monday, 16.09.2013. 14:04
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Aleksandar VucicAleksandar Vucic


First Deputy Prime Minister Aleksandar Vučić says that the fiscal deficit really needs to be substantially cut or “we shall eat ourselves”. He stated that seven out of nine measures to achieve this have been agreed.

Vučić pointed out that he spends 14 hours a day in his cabinet working on these measures and said that the government will present its programme in two weeks at the latest. For the measures it will adopt, the government will have the support of professionals, the IMF and other international institutions, but "certainly not of the majority of citizens".

- Nevertheless, I am convinced we are doing the right thing for our country. Cancer is not treated with Aspirin, and we are in an advanced stage of cancer. Not only our economy, but the whole system. We will go for changes to the labour law and the Law on Planning and Construction, changing these laws would enable easy and quick permitting procedures by the end of 2013, so we can finally conclude this after 15 years, said Vučić in his interview with Blic.

He says that the pension system is being reformed and that it is important that “we implement this reform not by cutting pensions but by creating a healthy basis for pesions to be higher in the future.

“Vučić said they are still searching for a way to cut labour taxes without burdening citizens and their property.

- Where you charge less tax, you have to find another way to fill the budget. We will try and find a balance so that the deficits are not who knows how many billions, and so that we will not have to impose taxes that would additionally discourage our citizens, he said.

Regarding the idea of introducing extra taxes, Vučić says that a solution is yet to be found and that "there is no wonderful solution".

- Nobody finds this idea comfortable or easy, but a solidarity tax would refer only to the public sector and more specifically to those with above-average income, but I hope that we will not have to introduce this measure – he says and adds that he believes that the 20% VAT rate will not be increased.

Concerning loans from the Emirates, he said that the interest rate will be lower than what we would expect from the European Investment Bank, the World Bank or other international institutions.

When asked how much lower it would be, he could not answer precisely, but said that it would be below 2.5% for 20 or 30 years and expects the loan to be granted by the end of the year.

When asked what the government would do with the money, he said that next year alone we have to return one billion and 114 million euros in interest payments.

- The money from the loan would be used for repaying part of the public debt so we could reduce our deficit by 0.4% in 2014. We also have to try to reduce the fiscal deficit for 2015. One part of it would be injected into the economy – explained Vučić.

Regarding foreign advisors, Vučić said that “we want to know whether they could help us on our European path and in our reforms."

- The German government is sending us Bettina Nelan who will be working with me as of 1 December – said Vučić.

Translation provided by: www.halifax-translation.com

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