Serbian Prime Minister Aleksandar Vučić announced Wednesday the increase in public sector pensions and salaries by 1. January next year after the International Monetary Fund (IMF) mission gave a positive rating to Belgrade in the third revision of the stand by arrangement of precautionary measures.

Vucic emphasized at the press conference that the "first time in the recent history" deficit of the state budget is lower every month.

According to him, salaries to health and social security staff will be increased by three percent, four percent of the educators, the police and the military by two percent, and all retired people will get linear on the 1,25 percent, which means that a retirement of around 200 euros will be raised was about two euros, and at the 400 Euro was slightly less than five euros.

Employees will also receive a one-off allowance of around 65 euros.

Vučić reminded that in Serbia, a total of 1.736.154 pensioners, of which 60 percent did not face retirement in last year's economic and fiscal reforms, when pensions and salaries were reduced in the public sector.

Vučić noted that, although at least, the increase for pensioners was higher than the one sought by the IMF with which the talks were "very difficult but the agreement was ultimately achieved," since it was "granted to the IMF by increasing the excise tax on fuel" .

"We are on a very good path, safe and stable, and that is why we have made a fiscal space to increase salaries and pensions. I'm not talking about short-term benefits, but about a long-term solution, "Vučić said.

The International Monetary Fund has approved Serbia's stand-by arrangement under the auspices of 23. February worth EUR 1,2 billion, encompassing structural reforms, saving measures, financial and fiscal consolidation, and a reduction in the budget deficit. Serbia has received positive ratings in its previous audits.

(Hina)