Economist: New Government Aid Package Unreasonable | Beta Briefing

Economist: New Government Aid Package Unreasonable

Source: Beta
Archive / News | 27.01.21 | access_time 18:30

Ljubomir Madzar(BETAPHOTO/MEDIJA CENTAR BEOGRAD/MO)

Serbia's renowned economist Ljubomir Madzar described as "unreasonable and inappropriate" a decision by President Aleksandar Vucic to give EUR60 to every person applying in a new government aid drive, and another EUR110 to each pensioner.

Madzar said for BETA that "it's completely irrelevant if there is enough money in the state coffers or not, and there's certainly not, because the state is borrowing and the public debt is growing." "If the decision was inspired by social support, it needs to be selective, not frontal, given Serbia's aging population. The move will discriminate against families with an above-average number of children," the economist explained.

Madzar said it made sense for a country to borrow to handle the costs incurred during the coronavirus pandemic, "but it definitely doesn't for this kind of aid, without precedent elsewhere."

The economist has warned it's irrational to distribute assistance to pensioners in such an arbitrary way, because "some pension checks are rather generous, and the decision has made all pensioners equal." "If the intent was to help pensioners, it's usually done by legislative changes," Madzar said.
 

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