Serbian Finance Minister Sinisa Mali told a session of parliament on Wednesday that next year’s budget is balanced with higher public sector salaries and pensions and increased public investments.

He said the higher salaries (from seven to 12 percent) and pensions would raise living standards while the investments would help the economy to grow and raise employment numbers.

Mali said the budget for 2019 has a planned income of 1,246.2 billion Dinars (1 Euro – 118 Dinars) and expenses of 1,269.1 billion which means the deficit will stand at 22.9 billion Dinars or 0.4 percent of the predicted GDP which is planned to grow at a rate of 3.5 percent with inflation standing at 2.3 percent. Investments will stand at 220 billion Dinars, or 30 percent more than this year, he said.

The finance minister said a set of financial laws will reduce tax burdens and strengthen the competitiveness of the Serbian economy while fiscal consolidation will secure a reduction of the public debt from 56.6 percent of the GDP to less than 50 percent.