Reuters - Video

Edition: U.S. | U.K. | IN | CN | JP

Business

Serbia PM on growth ambitions, rising debts

Thursday, October 31, 2013 - 04:19

Oct. 31 - Serbia, which is hoping to start EU accession talks in January, is struggling to contain its budget deficit and debt levels. Finance Minister, Lazar Krstic, outlines his ambitions for growth in 2014.

▲ Hide Transcript

View Transcript

Seve has announced some new reforms to cut -- spending budget deficit. Joining united discussed I would let the sagging economy is if you finance minister says a practice that thanks for joining us and Japan. You're new in the role when you've got to have had a full in trying its path to say you've also announced new manages to cut the budget deficit about 2% of GDP in the next three or four years. How are you intending to do not. Our overall objective is actually stabilizing the public that in and putting Herman downward path industry before your time -- and that's 2016 to 2017 that comes. Against the backdrop of what was -- ballooning public debt to GDP ratio from about 30% from 2008 to almost 60% at the end of 2012 and certainly about two and 60% at the end of 2013. He learned to do that we need to essentially address -- structural our structural. Oh deficit by area. Probably four to five 5% over the next three or four years the way to go body it's. -- these measures that we have announced. In the short term and then expanding into more structural reforms in 2015 and sixteen. What precisely often initial ten measures you're looking -- well there I mean there is six. Specific areas that we have. Built into draft budget for for 2014. Those are. And they're not popular and some of them are also not my first choice but come out of necessity for us to act quickly in order to turned. Turn it started turning the tanker I should say. One of them is an increasingly key of the lower rate of the -- for -- to 10%. The second one is. And that comes in the -- Or because we cannot have immediate results and fighting the green economy which is the right way for us increased revenues. It's reducing salaries above one and half effort sellers in Serbia via. 20%. That comes. Again as something that I think. And stacking the public wage bill which is which is definitely. A problem we have to tackle the better way to tackle the problem is to a more comprehensive. Structural reform that would increase not only deficiency but also the efficacy of all of those systems were talking to access state systems education healthcare public administration. Initial attend I mean are we going to see another budget revision here today is a very short terms so what what -- what I said is once we. That in November we would make a decision we have taken action since. He's -- reshuffled government. Was put in place which was the beginning of September starting with mid September -- it took actions to control our expenses expenditures and this year. We -- seeing we have started to see results of that -- in September Nolan looked over numbers come in. People will see even more done. So I'm still hopeful that we will not have to do a budget revision this year. Rules. Make a final decision over the course of them month of November but that's that's essentially where wearing. What about 2014 -- economy ministers had that we could expect to see negative GDP -- -- -- to educate us still the case. I think we're gonna see next year is the effect of this fiscal. Introducing fiscal discipline. And and these measures that have spoken about cycle I think it would be overly optimistic to expect 1%. But if we this year continued. Rising and agriculture and for -- which he. And experts as well which have been the driving factors in. In 2013. I think. We -- protecting his minister -- something around 1%. And I -- national bank has slightly higher selling I think. Going to be low. Think it's overall I think there's certainly going to be some parts of the economy -- sectors that are not going to be. Growing but I think economy as a whole. Will not be -- session. Thank you for joining us thank you. I was the new Zambian finance minister and -- Pakistan's joining me. To talk about the prospects for the senate in economy I'm John Park -- speculative.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Serbia PM on growth ambitions, rising debts

Thursday, October 31, 2013 - 04:19