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The payment of 100 euros to all adult citizens of Serbia from the state budget last spring was a bad social policy measure that does not allow a permanent or significant reduction in inequality and poverty, the Fiscal Council noted.
The council spoke on the occasion of a study by the International Labor Organization (ILO) and the European Bank for Reconstruction and Development (EBRD), which concluded that the program of paying 100 euros to adult citizens had “astonishingly strong effects in reducing inequality and poverty “in Serbia.
“The erroneous conclusion of the ILO-EBRD study is the consequence of fundamental errors and omissions in the analyzes carried out. A correct analysis, on the contrary, shows that the payment of 100 euros to all adult citizens is a bad policy measure that does not allow a permanent or significant reduction of inequality and poverty, ”said the Fiscal Council.
It was noted that it has no authority to measure the effect of a single measure in reducing inequality and poverty “because in this way a lasting improvement of these social problems cannot be achieved in the long term.
“In addition, the large indebtedness of the State (more than 70,000 million dinars) to pay 100 euros to the whole world will reduce the budgetary possibilities of assistance to citizens in danger and, therefore, potentially increase poverty in the future,” he says the analysis.
It goes on to say that “in addition to the fact that the ILO and EBRD simulations are not methodologically meaningful, they are also mathematically miscalculated, and even three and a half times exaggerate the single (temporary) effect of poverty reduction in 2020” .
It was assessed that “contrary to good research practices, the ILO and EBRD study does not consider alternative possibilities that the same or lower budgetary funds could have a significantly greater effect on reducing inequality and poverty, provided that are aimed at vulnerable households. and affected by the crisis, instead of being distributed indiscriminately to all adult citizens. “
“The payment of 100 euros to (all) adult citizens is an irresponsible fiscal policy that will make it difficult to implement systemic measures to reduce inequality and poverty in the future,” the Fiscal Council warned.
The council pointed out that the state had to contribute that money in the international financial market, and the cost of that debt would have to be reimbursed by all taxpayers for years.
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