Finance Minister of Serbia Lazar Krstic said that there are parts of the state administration, which receive huge salaries, and it is not clear what exactly they do and pointed out that the plan is to finish all structural reforms from  three to five years.

“We have to reduce the budget deficit as well as public debt, or to refinance it so that we have a sustainable interest,” said Krstic, adding that they are facing with major challenges in the next six months to a year.

Krstic point out that foreign investment are essential, but that government  needs to run small and medium enterprises, and revitalize public enterprises.

Answering on the question whether there will be reduction of pensions, Krstic said that pensions in Serbia can not be seen in isolation, but that there must be budget discipline and correction of anomalies of the system.

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He explained that there are parts of the state administration, which receive huge salaries, and it is not clear what exactly they are doing.

“In the company whit losses and that receives subsidies from the state can not spend millions on the representative costs . Professionalization is necessary, we need to introduce control and transparency of business, spending money, whether profit increase or decrease, weather  number of employees increase… state has not done it  aggressively enough, ” Krstic said.

Krstic reminded that Serbia, according to the Action Plan that is adopted at the previous session, committed to privatization of 179 companies that languish ten years be completed by mid of 2014, and that expect from us the World Bank and other international institutions.

By some estimates, those companies  spent 750 million euro from the budget. He pointed out that he is seeking the best solution for each of those companies.