Salaries and pensions will not grow until 2017

BELGRADE - An increase in public sector salaries and pensions in Serbia is not realistic before 2017, regardless of the fact that the initial results of the fiscal consolidation are good, editor of the periodical Makroekonomske analize i trendovi (MAT) Stojan Stamenkovic said on Tuesday.

The changes to the budget system law and the arrangement with the IMF state that pensions and salaries will go up when their shares in GDP drops to 10 and 7 percent from the current 13 and 10, Stamenkovic said in comment to reports of a potential increase in salaries and pensions by the end of this year.

An additional restraint is the fact that during the talks with the IMF about the most recent arrangement, it was agreed that any improvements in budget results would be used to pay government debts and raise public investments, rather than increase salaries and pensions, he pointed out presenting the latest issue of MAT.

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