Serbia cuts public spending to achieve balanced budget by 2015.

By bne IntelliNews April 28, 2010
In the next five years, Serbia is due to reduce share of public spending in the country's GDP by 0.75% each year in order to achieve a balanced budget in 2015, finance minister Diana Dragutinovic stated. Cut in public spending is part of a fiscal responsibility law, the minister said, adding that the first draft of the law has been already sent to the International Monetary Fund (IMF). Under the draft law, the ceiling for country's public debt will be set at 40% of the GDP, while new government borrowing will be limited to 2.5% of GDP per year. The tax reform proposal could be discussed with employers' organisations, trade unions and citizens, she added. The pension and tax system reforms will be the main topics discussed during the next visit of the IMF mission to Belgrade scheduled for mid-May.

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