Fiscal Council sceptical about effects of measures

BELGRADE - The proposed salary and pension cuts are insufficient and the VAT will have to be increased as a result, Fiscal Council President Pavle Petrovic said.

"(Serbian Prime Minister Aleksandar) Vucic reiterated last night that the estimates of the Fiscal Council are correct, but that he made the decision on the salary and pension cuts with the people who live off those incomes in mind. We are sceptical. If the proposals remain in place, the VAT will have to be increased," Petrovic told Blic.

The Fiscal Council had proposed a linear reduction of salaries and pensions by 15 percent.

The set of measures Vucic proposed late Thursday includes a reduction of salaries and pensions over RSD 25,000, a fierce fight against the grey economy, dismissals of administrative staff who are surplus to requirements, a reduction of subsidies for some public enterprises, as well as strengthening the private sector.

Photo Tanjug, R. Prelic (archive)