Last Updated: Monday, 26 September 2016, 15:18 GMT

Serbia announces austerity measures to avoid bankruptcy

Publisher Radio Free Europe/Radio Liberty
Publication Date 8 October 2013
Cite as Radio Free Europe/Radio Liberty, Serbia announces austerity measures to avoid bankruptcy, 8 October 2013, available at: http://www.refworld.org/docid/5261047d8.html [accessed 27 September 2016]
DisclaimerThis is not a UNHCR publication. UNHCR is not responsible for, nor does it necessarily endorse, its content. Any views expressed are solely those of the author or publisher and do not necessarily reflect those of UNHCR, the United Nations or its Member States.

October 08, 2013

Serbian Finance Minister Lazar Krstic said the government in 2014 will introduce 'solidarity taxes.'Serbian Finance Minister Lazar Krstic said the government in 2014 will introduce "solidarity taxes."

Serbia's government has announced austerity measures, including a plan to cut some public-sector salaries by up to one-quarter, in a bid to reduce public debt and avoid bankruptcy.

A six-point package presented by Finance Minister Lazar Krstic at a government meeting also included a value-added-tax increase from 8 to 10 percent for basic goods and the slashing of state subsidies and public-sector spending.

Krstic said the government in 2014 will introduce "solidarity taxes," ranging from 10 percent to 25 percent on salaries in the public sector that are above 60,000 dinars ($712) a month.

Serbia's economy contracted by 1.7 percent last year and unemployment is at almost 25 percent.

The government has foreign debt of 19 billion euros ($26 billion) and a budget deficit of 6.5 percent of annual GDP.

Based on reporting by AP and AFP

Link to original story on RFE/RL website

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