Minister of Finance Diana Dragutinovic said that Serbia should reduce the share of public expenditure in the GDP by 0.75% annually over the next five years so that Serbia is able to have a balanced budget by 2015.

Dragutinovic told the Voice of America that this is the essence of the law on fiscal responsibility which should enable a quicker and easier way out of the crisis. The draft version of the law has been submitted to the IMF for examination.

This law will stipulate that public debt must not exceed 40% of GDP and that the annual borrowing limit of the state must not go beyond 2.5% of GDP.

Speaking about the tax reform, Dragutinovic explained that for Serbia it is essential to define the pathway of the reform, which should subsequently be accepted by the ruling coalition, as well as by businessmen, trade unions and citizens.

The tax and pension reforms will be the main subjects of talks with an IMF delegation that is arriving in Serbia on 12 May, Dragutinovic said.

Referring to the results of bilateral talks of the Serbian delegation in Washington during the IMF spring meetings, Dragutinovic said that Serbia can expect assistance for upcoming reforms from the US through the IMF and the World Bank.