Fiscal Council

Pavle Petrovic says fiscal consolidation and reforms are being halted without first achieving the objectives for the recovery of the economy.

According to the Fiscal Council president the results have been partial, with only the deficit decreasing significantly - "the government's great success."

Members of Romania's parliament across parties agreed on Thursday to cut Value Added Tax (VAT) to 20% from next year, and to 19% from 2017.

VAT in Romania currently stands at 24%.

Aside from the tax cuts, the government led by Prime Minister Victor Ponta also plans to increase considerably the wages in the public sector from 2016.

Serbia's government on Thursday started technical talks with IMF representatives, led by James Roaf, on the second review of the IMF stand-by arrangement worth 1.2 billion euro.

In recent days, Serbia has said it will try obtain an agreement with the IMF to raise salaries and pensions.

But Muhamed Busatlija, an economist, said that was unlikely.

The Fiscal Council has said that it is necessary for Serbia to continue implementing austerity measures.

Initial success in fiscal consolidation cannot be the reason for giving up prematurely on the most important measures for deficit reduction, said the council, which is an independent state organ that reports to the Serbian assembly.

Serbia is giving more powers to inspectors to clamp down on the untaxed "grey" economy following adoption of a new Law on Inspection Control in April.

Inspectors are now entitled to enter any premises where they consider unregistered work is taking place unannounced - without warning to the owners or tenants.

The budget deficit in April was just RSD 0.9 billion, having dropped by around RSD 18 billion compared to the same month of last year, said the Fiscal Council.

The untaxed "grey" economy in Serbia is still cost the country about 30 per cent of its GDP, Nikola Altiparmakov, a member of the independent Fiscal Council, told parliament's Committee on Finance, State Budget and Control of Public Spending on Monday.

Fiscal Council president does not expect growth in 2015

BELGRADE -- President of Serbia's Fiscal Council Pavle Petrovic has said that he does believe Serbia will experience economic growth this year.

Petrovic told the state broadcaster RTS on Sunday that there were still no indicators to suggest that economic growth could occur in 2015.

BELGRADE - The Fiscal Council stated there has been a delay in reforms whose implementation is essential for permanent recovery of public finances and deficit reduction even after 2015, when the effects of salaries and pensions cuts in the public sector wear off.

BELGRADE - The Fiscal Council has noted on Thursday that conditions have not been met to consider rises in pensions and public sector salaries, not only in 2015, but also in the next two years, as in case of this year's increase, the fiscal deficit would as soon as in 2016 practically go back to the level before the introduction of the fiscal consolidation measures.