Serbia's new economic measures: Cheaper drugs and aid, but critics warn of budget impact

Serbia is introducing a new package of economic measures aimed at providing relief through cheaper medicines and financial assistance to pensioners and socially vulnerable groups. President Aleksandar Vučić highlighted the availability of various medications at lower prices, noting his personal long-term reliance on such treatments. This "financial therapy" is set to benefit approximately three million citizens. Over 1.5 million pensioners will receive aid totaling 377 million euros. Additionally, recipients of social assistance, child and veteran benefits, and veterans themselves can expect a combined financial injection of 71 million euros. However, economists express skepticism, viewing these measures as a recurring political strategy. Branimir Jovanović from the Institute for International Economic Relations in Vienna suggests it's an attempt to "buy votes" before elections. Economist Božo Drašković criticizes the ad hoc nature of these decisions, arguing that social assistance and benefits should be distributed based on established rules, not on the whim of the president, labeling it as a politically motivated approach. Finance Minister Siniša Mali assures that the total cost of these measures, slightly below 600 million euros, will be covered by existing funds and will not negatively impact public finances. Drašković counters that such spending might necessitate cuts in investments for education and healthcare, reallocating funds for political campaigning purposes. He also points out that Serbia has one of the lowest social protection investments relative to GDP in Europe, a trend he believes is intentionally decreasing poverty to be exploited during elections.

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I know all of these – from konkora, nifelat, norvaks, all possible ones, what can you do, I've been taking these medications for 25 years, Zlatibor, it's not... I have that therapy.