Minister of Finance Diana Dragutinovic stated that the government is very close to reaching an agreement with the IMF regarding the budget for 2010, specifying that the projected revenues stand at between RSD 620 and 640 billion.

At the meeting, held in the National Bank of Serbia, Dragutinovic said that the budget for 2010 will not be ‘revolutionary’, but will imply reduced public spending.

She said the talks are underway to adjust pensions and salaries, as well as to reach agreement on the efforts needed for fiscal stimuli.

The Minister stressed that the government intends to prevent any fiscal policy ‘experiments’, reiterating that the budget revenues will be between RSD 620 and 640 billion.

Dragutinovic noted that budget savings in 2010 will be attained by freezing salaries and pensions, reducing the number of employees, limiting subsidies and reducing the number of priorities when it comes to capital expenditure.

Minister of Labour and Social Policy Rasim Ljajic met also yesterday with an IMF delegation, led by head of the IMF mission to Serbia Albert Jaeger, and discussed savings measures which the Ministry will implement in 2010.

The Ministry says in a statement that Ljajic informed the IMF delegation about the novelties that will stem from the new law on social care, which the Ministry working group is preparing, stressing that the new solutions will enable a more even-balanced division of social contributions.

Ljajic added that thanks to the new law the possibility of abuse will be reduced which will enable the stability of the system for a longer period of time.

Speaking about social contributions for 2010, Minister Ljajic said they will not be raised, but that there is a possibility that the number of beneficiaries receiving material assistance will be increased due to the global economic crisis.

Ljajic and Jaeger voiced their hope that the talks between the government and the IMF about the second tranche of the stand-by arrangement will be successfully concluded, the statement adds.