Fiscal Council: Improvements present, but insufficient
The proposed 2017 budget bill brings improvements to public finances, but the opportunity to take a bigger stride towards a lasting recovery has been missed.Source: Tanjug
This is according to the Fiscal Council - an independent state institution that reports to the Serbian National Assembly.
The government debt of approx. 74 pct of GDP is exceptionally high and dangerous, Fiscal Council President Pavle Petrovic told a press conference Friday.
Unsuccessful public and state-owned enterprises are a huge budget expenditure, but also pose a budget risk for the future, he noted.
The relatively low 2017 budget deficit, which amounts to 69 bln dinars, will reduce the public debt-to-GDP ratio by about 1.1 percentage points, Petrovic said.
The deficit has been planned in a credible manner and there are no major risks of revenues falling significantly short of the plan or expenditures spiraling out of control, he said.