Minister: Budget deficit no tragedy

Minister of Trade and Services Predrag Bubalo, DSS, says that some RSD 30bn of deficit in the state budget "is not so tragic".

Izvor: Tanjug

Sunday, 15.06.2008.

14:38

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Minister of Trade and Services Predrag Bubalo, DSS, says that some RSD 30bn of deficit in the state budget "is not so tragic". But, Bubalo added in an interview for daily Vecernje Novosti, it is enough to slow down Serbia's economic growth. Minister: Budget deficit no tragedy "This problem would've been incomparably smaller had the EBRD investment loans been ratified," he said, and added that accepting the Horgos-Pozega highway contract and the energy agreement with Russia would also have helped keep the GDP growth on track, more goods in circulation, "and the state budget full". Bubalo also rejected claims that the deficit came because of the Kosovo elections, since current funds are set aside for the province, while each ministry participates with its share. "I cannot agree that elections were the reason. If we look at the statistics, we have had one election each year since 2000. Therefore, anyone who proposes a budget cannot avoid projecting elections," the minister continued. In his words, payment of pensions might encounter difficulties in the second half of the year, because this expenditure is linked with the cost of living. "We have a situation where RSD 3.2bn were set aside for reserves, while until now, RSD 3.4bn have been spent. This means that we effectively have no budget reserves, and six months are still ahead of us," Bubalo warned. Predrag Bubalo (FoNet, archive)

Minister: Budget deficit no tragedy

"This problem would've been incomparably smaller had the EBRD investment loans been ratified," he said, and added that accepting the Horgoš-Požega highway contract and the energy agreement with Russia would also have helped keep the GDP growth on track, more goods in circulation, "and the state budget full".

Bubalo also rejected claims that the deficit came because of the Kosovo elections, since current funds are set aside for the province, while each ministry participates with its share.

"I cannot agree that elections were the reason. If we look at the statistics, we have had one election each year since 2000. Therefore, anyone who proposes a budget cannot avoid projecting elections," the minister continued.

In his words, payment of pensions might encounter difficulties in the second half of the year, because this expenditure is linked with the cost of living.

"We have a situation where RSD 3.2bn were set aside for reserves, while until now, RSD 3.4bn have been spent. This means that we effectively have no budget reserves, and six months are still ahead of us," Bubalo warned.

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