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Wages, pensions to be frozen in 2010
BELGRADE -- Finance Minister Diana Dragutinović said that wages and pensions for employees in the public sector will be frozen once again in 2010.

Diana Dragutinović (FoNet archive)
Diana Dragutinović (FoNet archive)

In an interview with daily Večernje Novosti, she said that wages and pensions, which make up about 25 percent of the expenses for income, will be frozen in 2010, as will a portion of subsidies for covering wages of employees in several public companies and other companies that have yet to be privatized.

Asked how much money this will save, Dragutinović said that it is a savings of in between two and 2.5 percent of the gross domestic product over a period of two years.

Dragutinović said that the government will focus on public companies that have the most problems in 2010, including the Serbian Railway, the Resavica Mines and Jat Airways.

“What is certain is that there are significant surpluses of workers in those companies that will be made redundant just like those not needed in the state and local self-administrations,” she said.

Speaking of the control of spending state money, she said that agreement have been reached on the law for the budget system, to have it grow into a law for the budget system and fiscal responsibility.

“The deadline for adopting it is April 2010, in order for the 2011 budget to work according to fiscal rules,” Dragutinović said.

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