Government passes 2011 budget balancing bill

The government passed the 2011 budget balancing bill, coordinated with the International Monetary Fund, which allows for a RSD 142.7 billion budget deficit.

Izvor: Tanjug

Friday, 16.09.2011.

15:22

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The government passed the 2011 budget balancing bill, coordinated with the International Monetary Fund, which allows for a RSD 142.7 billion budget deficit. Under the bill, budget revenue will be RSD 707.34 billion and spending RSD 850.91 billion, State Secretary with the Ministry of Finance Dusan Nikezic told a news conference. Government passes 2011 budget balancing bill Under the agreement with the IMF, the consolidated budget deficit for this year will be increased from the original 4.1 percent of the GDP to 4.5 percent. The budget balancing bill increases the spending for pensions, salaries and social security, Nikezic said, adding the increases will be effective starting October, as was planned. He said hiring and agriculture incentives will not be cut, and important infrastructure projects will not be postponed. The biggest savings will come from capital spending, based on a better planed payment dynamic and from spending on interests. Nikezic reminded that passing the bill is a condition for an agreement with the IMF and a sign the Serbian government is implementing a responsible economic policy and sending this signal to investors. He noted the budget balancing should boost economic activity and hiring in the country, adding that all ministries had a "constructive approach" in drafting the bill. The government needs to pass budget balancing and restitution bills and send them to the parliament by the end of September, in order for the IMF Executive Board to approve a EUR 1 billion precautionary arrangement for Serbia toward the end of the month.

Government passes 2011 budget balancing bill

Under the agreement with the IMF, the consolidated budget deficit for this year will be increased from the original 4.1 percent of the GDP to 4.5 percent.

The budget balancing bill increases the spending for pensions, salaries and social security, Nikezić said, adding the increases will be effective starting October, as was planned.

He said hiring and agriculture incentives will not be cut, and important infrastructure projects will not be postponed.

The biggest savings will come from capital spending, based on a better planed payment dynamic and from spending on interests.

Nikezić reminded that passing the bill is a condition for an agreement with the IMF and a sign the Serbian government is implementing a responsible economic policy and sending this signal to investors.

He noted the budget balancing should boost economic activity and hiring in the country, adding that all ministries had a "constructive approach" in drafting the bill.

The government needs to pass budget balancing and restitution bills and send them to the parliament by the end of September, in order for the IMF Executive Board to approve a EUR 1 billion precautionary arrangement for Serbia toward the end of the month.

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