"Budget postponement due to strikes"

Free Market Center Director Milan Prokopijević says the government may have postponed the budget “because of the strikes.”

Izvor: B92

Saturday, 01.12.2007.

13:49

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Free Market Center Director Milan Prokopijevic says the government may have postponed the budget “because of the strikes.” The government yesterday withdrew the 2008 budget proposal from next Monday’s parliamentary agenda, and rescheduled it for December 10. "Budget postponement due to strikes" While various explanations for the postponement are coming from the coalition, economists warn that such a decision could be politically detrimental. “The government is in an extremely sensitive position where, of course, pressure can be felt from all sides. If they choose to meet some of the strikers’ demands, the government must really watch out, as every concession actually leads to a rise in inflation, a price that the tax-payer will end up paying,” said Prokopijevic. He adds that postponement of budget adoption is not major news for Serbia, though in political terms it could be very bad news. The same week the budget debate is scheduled, parliament is due to hold a session on Kosovo, as well as launch a debate on the laws necessary for calling local elections, provided that, by then, the necessary set of laws for presidential elections have been passed. “In the space of a couple of days, the budget will come up again in an unchanged form. So, it’s nothing to do with any problems or disagreement over the budget, or to any kind of political considerations, but is purely of a procedural character,” said Finance Minister Mirko Cvetkovic. Parliamentary Speaker Oliver Dulic, on the other hand, claimed that the postponement had been due to “additional fine-tuning of proposals.”

"Budget postponement due to strikes"

While various explanations for the postponement are coming from the coalition, economists warn that such a decision could be politically detrimental.

“The government is in an extremely sensitive position where, of course, pressure can be felt from all sides. If they choose to meet some of the strikers’ demands, the government must really watch out, as every concession actually leads to a rise in inflation, a price that the tax-payer will end up paying,” said Prokopijević.

He adds that postponement of budget adoption is not major news for Serbia, though in political terms it could be very bad news.

The same week the budget debate is scheduled, parliament is due to hold a session on Kosovo, as well as launch a debate on the laws necessary for calling local elections, provided that, by then, the necessary set of laws for presidential elections have been passed.

“In the space of a couple of days, the budget will come up again in an unchanged form. So, it’s nothing to do with any problems or disagreement over the budget, or to any kind of political considerations, but is purely of a procedural character,” said Finance Minister Mirko Cvetković.

Parliamentary Speaker Oliver Dulić, on the other hand, claimed that the postponement had been due to “additional fine-tuning of proposals.”

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