With regards to the economy, the new Serbian Government has focused on decreasing the budgetary deficit and public consumption, boosting the economic growth and employment, as well as realizing the national developmental projects. According to Prime Minister Ivica Dacic, the economic recuperation is the priority on which the realization of all other national goals will depend. More in the report of Biljana Blanusa.
In his exposé, Dacic has stressed that Serbia needs a developmental economic policy, which will help the economic recovery and improving the living standard of the citizens. He said that Serbia should be a country of the social justice, so the economic policy would not be aimed at saving and “tightening the belt” of already impoverished citizens, but the burden of the crisis will be balanced between the state institutions and financial sector. In saying that the big economic crisis has left consequences in the form of unemployment and economic illiquidity, the Prime Minster has pledged for the stronger role of the financial sector in stimulating the economic activity. He has said that the degree of the state debt, in relation to the GDP, is lower than in other European countries, and added that in order to decrease it, the growth of the GDP must be enabled. When it comes to first measures of the new government, they will be directed at the establishing of the stability of the national currency, continuation of state subsidies, better prices of capital, more efficient administration and stimulation to exporters and agriculture - all that aimed at creating the better business conditions.
As part of the development strategy, the government will especially stimulate the agriculture, food industry, energy supply and infrastructure, as the bearers of the investment activities. Attracting foreign investments is significant for the economic development, so subventions in that domain can be expected, as was practiced in the previous period as well.
With the goal to change the unfavorable structure of the GDP, with prevailing services, the government has announced the process of re-industrialization. In regards of the monetary policy, it will be aimed at stopping the devaluation of the national currency. Dacic sees no dilemma between the saving and development, because Serbia needs both.
According to the coalition agreement of the parties that have formed the government, by September the urgent measures can be expected, intended to decrease the budgetary deficit and cutting down the bureaucracy and eliminating the unnecessary state expenses. The new law on public procurements is announced for October, which should bring new savings. The taxation policy will be reformed and unneeded local taxes canceled. The agriculture should be a priority, so the envisaged budget will be doubled. Although the ruling coalition has decided that there will be no freezing of wages and pensions in the public sector, as it had been required by the Fiscal Council and supported by the IMF, continuation of negotiations with that international institution is planned, regarding the new arrangement. Also announced is the reform of public companies, with more professional management, but still with state in the control position. Having in mind the set goals, there will be many challenges before the new government in realizing them.