Udovicki: Savings in public administration necessary

BELGRADE - Serbia needs to save up five percent of costs for public sector salaries in 2015 as was previously agreed in the talks with the mission of the International Monetary Fund (IMF), Serbian Deputy Prime Minister and Minister of Public Administration and Local Self-Government Kori Udovicki said on Wednesday.

The focus of efforts will rest on reorganisation of public administration and not on reduction of the number of employees, Udovicki said at the presentation of the 2014 White Book issued by the Foreign Investors Council (FIC).

According to the agreement reached with the IMF, Serbia will implement reorganisation in such a way as to adjust the public administration to the needs of citizens and economy.

Reduction of costs by five percent will be partly covered by the retirement of a certain number of employees and, to a degree, through expiry of part-time employment contracts.

Serbia's public administration is not well-suited to its purpose, she said.

The number of public sector institutions in Serbia that have been restructured and adjusted to their purpose totals zero, Udovicki said during a panel discussion at the presentation of the FIC White Book which presents the image of business climate in Serbia and contains recommendations for its improvement.

There is a certain degree of frustration among businessmen and citizens coming in contact with public administration, Udovicki said and added that the public administration is currently not providing the services necessary for progress of companies, nor does it offer high-quality services to citizens.

Photo Tanjug Video, camera operator Djordje Spasic