Although the economists mostly supported government crisis measures, some of them have already been severely criticized. Primarily, the decision to pay out of the budget a sum of 100 euros to all full of age citizens is under attack. So far, no one knows who precisely will be entitled to the donation, i. e. does it cover or not Serbian citizens abroad. The majority in the Fiscal Council is convinced that government did not give enough reasons for such payment. The usual explanations citing its role in speeding up the growth or helping the realization of social justice are not logical. According to them, a measure having no economic or social justification is only to disturb the recently acquired fiscal stability, increase indebtedness and slow down country’s development. Especially embarrassing is the fact that the amount will be paid only after the epidemic is over. Why, then, was it ever included in the recovery package?
The donation will not spur production because the problem we are currently confronted with is not a lack of money in citizens’ pockets, but disruptions in supply chains and lack of workers who are obliged to stay at home and cannot go to work. Nor will it increase demand which has also been limited not for the lack of money, but for citizens’ confinement. After all, a big part of the donation will be used for buying imported goods, which will add to foreign trade deficit and weaken the domestic currency.
Besides, there is no argument to support this measure from the social point of view, either. The Council argues that at the international level it’s hard to find a country which donates all its citizens, without any selection. Usually there are strong criteria in directing money precisely to those who mostly need it – to the unemployed, self-employed, parents who take care of school children and some categories of the retired.
The main reason for Council’s criticism, however, is a tremendous “hole” that will be made in the budget by a 70 billion dinars (593 million euros) spending (equaling 1.3% of the country’s GDP).
The economists have calculated that such an amount would be sufficient to cover one-year unemployment benefits for 200,000 jobless or 500,000 of those who receive some kind of social assistance.
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