Lazar Krstić: Economists make drama, bankruptcy not in sight

Lazar Krstić: Economists make drama, bankruptcy not in sight

We are inclined to apocaliptic assessments and predictions. This is comment by the Serbian Minister of Finance on claims that the country shall go into bankruptcy if it fails to save 400 million Euros.

Minister Krstic confirms that the minus in the state budget has to be smaller and adds that to be one of the goals of economic recovery of Serbia. – Until 2017 we have to cut the budget deficit to be not more than three percent of the GDP.

The Blic asked how that money would be saved since the projections for the minus in the state budget are eight percent of the GDP. Krstic replies that two new measures that are in plan are expected to give effects in the first six months after constitution of the new government.

- That money shall be provided in the first place by aggressive tackling of grey economy, but also by cutting of the public sector – Krstic says.

Solidarity tax shall remain. We asked the Minister if it would be collected from pregnant women, too.

- The solidarity tax shall be collected from the employees in public sector with salary of over 60,000 Dinars. All compensations for pregnant women and those who have given birth recently, have to be paid to them as well as their regular monthly pays. Employers have to respect the law and effect all payments to their employees in due time – Krstic says.

We asked him about the banks since the Government has not proved itself as a god boss. We wanted to know if the Government should keep its ownership in them.

- We have six or seven state-owned banks. We shall soon present our...