Parliament opens debate on budget review

BELGRADE The Serbian parliament is launching a debate on this year's budget review and accompanying bills, including the abolition of 138 parafiscal taxes. MPs will also discuss whether to abolish seven agencies and other regulatory bodies. Parliament opens debate on budget review The agenda of the emergency session, which was scheduled at the request of 123 MPs, comprises a total of 36 draft laws and other acts. Apart from the budget review, which envisages the revenues of RSD 829.6 billion, expenditures of RSD 1,033.2 billion, and deficit of RSD 203.6 billion, or 6.2 percent of the GDP, and proposals for introducing changes to the financial plans for 2012, MPs will also consider a set of draft laws aimed at putting Serbia's public finances in order. Therefore, the agenda will also include amendments to the laws on income tax, the VAT, administrative taxes, budget system, tax procedure and tax administration, excises, fiscal cash registers, tobacco, determining the maximum salary in the public sector, pension and disability insurance, and financing of local self-governments. The proposed bills also envisage the abolition of parafiscal taxes, which will lift the burden from Serbia's economy, as well as the minimum rise in excise duties on cigarettes and diesel fuels. The general VAT rate will be raised from 18 to 20 percent as of October, while foodstuffs will be subject to a lower rate of 8 percent. MPs will also consider bills aimed at confirming the international agreements and other acts, which were tabled by the government. The bills should confirm the agreement on cooperation in the domain of defense between the Serbian and Algerian governments, the memorandum of cooperation between Serbia and the UN on contribution to the UN standby arrangement system, the agreement between the Serbian government and Moldova on readmission of persons with an illegal stay. The tax revenues account for 84.5 percent or RSD 700.6 billion out of a total of RSD 829.6 billion envisaged by the budget revision, whereas non-tax revenues amount to RSD 127.35 billion or 15.4 percent of the overall budget revenues. The remaining funds would come from donations, equaling RSD 1.6 billion, or 0.2 percent of the overall revenues. The agriculture budget will be increased by RSD 10 billion, and after the review would amount to around RSD 41 billion, which will provide the funds for paying this year's subsidies and enable the implementation of emergency measures for easing the adverse drought-related consequences. A view of the Serbian parliament (Beta, file) "New laws to prevent growth of public debt" Serbian Minister of Finance and Economy Mladjan Dinkic has stated that a set of law the parliament will start discussing on Tuesday, which should reduce the growth of public debt in the future, is much more important than the budget review itself. Dinkic said at a sitting of the parliament's finance committee that the draft budget for 2013, which might be finished in a month, will include a small package of measures that would contribute to fiscal consolidation. He stated that the 2013 budget will reduce unnecessary subsidies and different expenditures of the ministries, and added that other measures which will make it possible for the budget deficit to be 3.5 percent will be adopted. Dinkic also said that the 2012 budget review envisages a deficit of 6.2 percent of GDP, adding that by adopting this package of measures the budget deficit in 2013 will amount to 3.5 percent, in 2014 -1.9 percent and in 2015 - 1 percent. Tanjug

Parliament opens debate on budget review

The agenda of the emergency session, which was scheduled at the request of 123 MPs, comprises a total of 36 draft laws and other acts.

Apart from the budget review, which envisages the revenues of RSD 829.6 billion, expenditures of RSD 1,033.2 billion, and deficit of RSD 203.6 billion, or 6.2 percent of the GDP, and proposals for introducing changes to the financial plans for 2012, MPs will also consider a set of draft laws aimed at putting Serbia's public finances in order.

Therefore, the agenda will also include amendments to the laws on income tax, the VAT, administrative taxes, budget system, tax procedure and tax administration, excises, fiscal cash registers, tobacco, determining the maximum salary in the public sector, pension and disability insurance, and financing of local self-governments.

The proposed bills also envisage the abolition of parafiscal taxes, which will lift the burden from Serbia's economy, as well as the minimum rise in excise duties on cigarettes and diesel fuels.

The general VAT rate will be raised from 18 to 20 percent as of October, while foodstuffs will be subject to a lower rate of 8 percent.

MPs will also consider bills aimed at confirming the international agreements and other acts, which were tabled by the government.

The bills should confirm the agreement on cooperation in the domain of defense between the Serbian and Algerian governments, the memorandum of cooperation between Serbia and the UN on contribution to the UN standby arrangement system, the agreement between the Serbian government and Moldova on readmission of persons with an illegal stay.

The tax revenues account for 84.5 percent or RSD 700.6 billion out of a total of RSD 829.6 billion envisaged by the budget revision, whereas non-tax revenues amount to RSD 127.35 billion or 15.4 percent of the overall budget revenues. The remaining funds would come from donations, equaling RSD 1.6 billion, or 0.2 percent of the overall revenues.

The agriculture budget will be increased by RSD 10 billion, and after the review would amount to around RSD 41 billion, which will provide the funds for paying this year's subsidies and enable the implementation of emergency measures for easing the adverse drought-related consequences.

"New laws to prevent growth of public debt"

Serbian Minister of Finance and Economy Mlađan Dinkić has stated that a set of law the parliament will start discussing on Tuesday, which should reduce the growth of public debt in the future, is much more important than the budget review itself.

Dinkić said at a sitting of the parliament's finance committee that the draft budget for 2013, which might be finished in a month, will include a small package of measures that would contribute to fiscal consolidation.

He stated that the 2013 budget will reduce unnecessary subsidies and different expenditures of the ministries, and added that other measures which will make it possible for the budget deficit to be 3.5 percent will be adopted.

Dinkić also said that the 2012 budget review envisages a deficit of 6.2 percent of GDP, adding that by adopting this package of measures the budget deficit in 2013 will amount to 3.5 percent, in 2014 -1.9 percent and in 2015 - 1 percent.