Economy Back on its Feet 2011

By: Milen Vesovic
Belgrade, 30 November (Serbia Today) - Serbia will back to full speed by 2011 and it growth should reach or exceed the level of growth in 2008, said Prime Minister Mirko Cvetkovic in the Serbian Chamber of Commerce on Friday, when he announced the government's economic measures for the next year.
Cvetkovic said that the executive has no plans to introduce a new tax burden on the economy next year and reiterated that the pensions and salaries in the public sector will not be cut, but remain frozen. The practice of encouraging economic growth through subsidized loans, liquidity, investment and consumption will also be continued throughout 2010 year.
The Prime Minister hopes that next year the budget deficit will be 4% and that, at most, in five years the budget will be operating without a deficit. There is plan for a tax refund on interest savings, but it will be 10%, not 20% as had earlier been discussed. Next year, the Prime Minister expects a stable exchange rate for the Dinar, and to reduce the NBS prime interest rate, lower the inflation rate and stabilize prices.
The Prime Minister, speaking on Serbia’s debt, said that "our indebtedness increased, but less than it could have." Next year will be marked by infrastructure investments that have been planned this year after reaching agreements on more borrowing.
“We will be able to say, we have debt, but we have time. We have debt, but we have a bridge. We have debt, but we have a new railway,” said Cvetkovic in his closing statements.