Economic reforms in Serbia

Minister of Finance and Economy of the Republic of Serbia, Bozidar Djelic, has, at the round table „Economic reforms in Serbia“ which was held in Dom omladine in Belgrade, criticized the inefficiency of Serbian Judiciary, stating that the Ministry of Finance and Economy has already submitted significant number of denunciations against people from the previous regime for financial frauds and abuse of jurisdiction in economy, but no verdict has been delivered so far.

„I can hardly wait for someone to go to prison for tax evasion“ Minister Bozidar Djelic said, and remained that no one was arrested for tax evasion over the last two years. He said that „These things happen“ and that no one is exempted from their legal obligations in the developed world, especially when it comes to paying duties to the state.

-At this moment the hard currency reserves are 2.1 billion dollars. These reserves can cover a four-months import of 500 million USD, said governor of National Bank of Yugoslavia, Mladjan Dinkic and also stated that „at the moment we have average salary of 320 DM, 9960 dinars is the figure for August. It is important to look at the shares in the income, of how much goes on food and beverages, how much goes on heating and electricity and how much on other necessities. At this moment, around 52% of the total income goes to other necessities and only two years ago it was 0%. His assessment is that the average salaries will come to the level from 1990 of 620 DM, in three years time.

Minister Djelic has also spoken about the standard of living stating that – the increase in salaries was much more rapid than in some other countries, with the remainder that the base was very low. He thinks that one should not compare with Slovenia because their gross domestic revenue was 7 times bigger than ours. As an example, he stated Bulgaria, with a more comparable gross domestic revenue.

– Salaries in Bulgaria are now lower, by some 15%, than in our country, while the pensions are precisely twice as lower. Why is that? Because they are paying only what is collected by the pension funds, and these pensions are the half of those we are paying here, because,
we subsidize the pension Fund by 40% from collected taxes. If you consider the price of electric power, both in Bulgaria and Romania, it is 40-50% bigger than in our country, while their salaries are much lower. Nobody`s saying that this is fabulous, but at present, and at this level of economic development, we did not abridged anybody, neither the pensioners nor the employed – this was Mr. Djelic`s opinion.