Mirko Cvetkovic’s interview to Glas javnosti daily, June 14, 2007
A 28 billion more will be spent for public sector wages, relative to 2006. Severance pays for 4,500 former Zastava workers. Tax Administration lacks capacities to outwit resourceful employers, who eschew paying contributions – the legislation will have to change.
Mirko Cvetkovic, the new minister of finance, has been conducting intensive talks with the largest budget beneficiaries in the attempt to persuade them to restrain their spending. Budget proposal should be in the Parliament by the end of the week, and expected revenues in the state coffers, privatization receipts excluded, should amount to 581 billion dinars.
“The idea is to align expenditures with the revenues and to have a balanced budget, though I know it is impossible due to the liabilities assumed by the previous government. I said earlier that the deficit may be around 1.5 percent of gross domestic product, but as we are budget proposal for this year, it will be far less, around 0.5 percent. I think we could be satisfied with that. It is an extorted situation, and the key objective is not to feed the demand or disrupt the achieved macroeconomic stability, and to consider reducing public expenditure in the future”, Cvetkovic said.
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