(MENAFN) Serbia's parliament announced it has approved a 2015 budget that intends to cut spending on pensions and unprofitable public industries to secure an International Monetary Fund loan, Gulf News reported.
The budget for next year forecast a deficit at USD2.31 billion, or around 6 percent of national output, as well as setting revenues at USD9.20 billion and expenditures at USD100.9 million, which in line with a USD1.19 billion loan deal with the IMF
The forecasted deficit in next year's, which reached more than 7 percent of gross domestic product (GDP) in 2014, is expected to be at 4 percent of the country's GDP, with the budget also setting USD7.03 as public borrowing, which will be used partly to cover the costs of closing down loss making state-run firms and shedding jobs in the bloated public sector.
The country, which has failed to attract significant foreign investments, apart from a Fiat car factory, also expects to register an unemployment rate of 25 percent, due to the country deciding to cut up to 27.000 jobs in its public sector.
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