Fiscal Council „no excuse“: Increase in salary UNSUSTAINABLE

The Fiscal Council has publicized its assessment of the state budget revision in which „excessive salary increase in the range of 8 to 15 percent“ is indicated as the most economically damaging measure, adding that the increase planned is „not based on economic growth“ and thus „fiscally unsustainable and irresponsible“. „The effect of this measure is actually minimal in 2019, because increased salaries will only be paid in one month (December), but in 2020 they will cost the country 12 times more and they will represent a huge and lasting fiscal burden,“ the Fiscal Council noted. The document submitted to the media by the Fiscal Council emphasizes that salary increases in the general state are justified, but to the extent that economic activity is growing, „which is something the government has failed to adhere to for the second year in a row“, since the salaries have already been increased in this year’s budget by nine percent on average, although economic activity will grow from five to 5.5 percent. The Fiscal Council also notes that providing financial assistance to pensioners of RSD 5,000 is not a good measure of social policy. As the economically most viable measure of the budget revision they underlined an increase of investments in road infrastructure by RSD 13 billion, but it is added that it is not certain that these expenditures will be realized as planned. The Council stresses that the Law on the Conversion of Loans Indexed in Swiss Francs has brought an unjustified budgetary expenditure of nine billion dinars, and that the revision provides for an additional increase of 10 billion dinars for the already unusually high expenditures for equipping the army and police.

Izvor: N1, FoNet

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