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There are no conditions for the six percent economic growth rate, as announced by the Minister of Finance, explaining the planned budget for next year, said Professor of the Belgrade Faculty of Economics and former Governor of the National Bank of Serbia, Dr. They leave Soskic.
Explaining the budget proposal for next year in the Serbian Parliament, Finance Minister Siniša Mali said that the national budget for 2021 is planned to ensure that Serbia has the highest economic growth in Europe in the next two years, thanks to measures taken by the government this year to help the economy and citizens during the pandemic.
“Such growth would certainly serve Serbia well, but I think there are no conditions for such a high growth rate. Investments, especially from domestic entrepreneurs, are at a low level, and foreign investments are lower this year, and it is not realistic to expect special economic growth. ” “he said.
Expectations for economic growth are exaggerated and should not be the way the government has them, adds Šoškić. “It would be much more realistic to predict much lower growth, it is easy to spend more if the year is better, but what if it is not,” he asked.
“I do not share the assessment that we will have six percent, we may have a positive rate of economic growth, but I am very skeptical that it will exceed three percent. It would be interesting to hear what those expectations are based on, but it would be nice to have a plan of what will happen if that doesn’t happen, “he said.
According to Šoškić, the most controversial point in the budget is constantly postponing the restructuring of public companies. “Every year we have a huge budget allocation for various subsidies to various state enterprises, this problem is obviously neglected, as well as the fact that jobs are not introduced in the public sector, that is, the degrees of payment and rationalization, to stop the constant overflow in those budget companies. “, he evaluated.
If there is no growth as announced by the government, Soskic warns that Serbia would have to implement fiscal consolidation more sharply in the coming years.
We think that only by offering money to foreign investors and “bribing them to come”, we can make growth, but we cannot, it is necessary to incentivize national private investments, said the New Day guest, adding that the business is based on fair conditions to everybody. educated workforce: Serbia must improve conditions there.
“It is especially not good that we are constantly raising salaries in the public sector, that salary growth is not justified, especially not to this extent, it is unsustainable, we do not have this GDP growth, we are sending negative signals about the competitiveness of the national economy, “he said.
He estimated that doctors have long been earning much higher salaries.
“When you compare the salaries of doctors with the salaries of some agencies, in public companies, it is nonsense. We still have these unacceptable disparities … it is unfair to people who have invested a lot of time in their education and in treating us” , said. He added that we are fundamentally neglecting investments in knowledge and science.
He believes that you have to think long-term, understand basic macroeconomic relationships, work systematically to improve competitiveness.
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