Public Finance In Serbia: What Can Companies Expect?
Companies expect low taxes, adequate budgetary support and contribution to the stability of fiscal and financial system from the public sector. The current public finance performs none of the three tasks in an adequate manner. First, public consumption in Serbia is high and inappropriate. The quality of service, which the public sector provides the economy with, is not satisfactory. Second, the structure of public expenditures is unfavorable. Current expenditures, and salaries and pensions within these, have an advantage, while, on the other hand, a sharp reduction in capital expenditures is implemented and further projected, as well as reduction in subsidies and government loans, and in the purchases of goods and services from the budget. Third, public finance does not improve financial stability. The state is a strong competitor to companies in the financial market, and both the legal and the economic limits of the public debt are reached. As part of the required public sector reform, it will be necessary first for the state to seriously demonstrate to the economy that, through the reforms of health, education, public administration, public companies and pension system, as well as through regulation of business environment and grey economy, the conditions and costs of business operations will be more favorable in future. Then, the tax reform would also be easily accepted by the economy and by the citizens.
Volume (Year): (2012)
Issue (Month): 1-2 (January)
|Contact details of provider:|| Postal: Bulevar Mihajla Pupina 147, Dobrinjska 11, Belgrade, Serbia|
Phone: +381 11 3613-409; +381 11 2644-980
Fax: +381 11 3629-689
Web page: http://www.ses.org.rs
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:srb:journl:y:2012:i:1-2:p:41-49. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Milos Stamatovic)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.