Cabinet adopts 2008 budget draft

The government today held an extraordinary meeting to discuss the 2008 budget proposal. The adopted draft says that the budget, in line with the previously adopted Budget and Fiscal Politicy Memorandum, is planned to be about ten percent higher than in 2007. Cabinet adopts 2008 budget draft But reports after the session indicate that contrary to the memorandum, the wages in the public sector will not freeze, but will continue to be harmonized with the inflation figure. Proposed budget revenues for next year are expected to be at RSD 639.6bn with a deficit of about RSD 14.3bn. Ahead of the session today, economist with the Institute for World Economy in Vienna Vladimir Gligorov, told B92 that the budget is expected to increase because of the coming elections in 2008. “The suggestion is for the wages to have certain increases in the fund, with the idea that better elections results will be achieved in that way." "There will be some strategic wage increases, and pension increases were promised as well, and also, at the end of this year and the beginning of next, pre-election and holiday bonuses are also on the agenda,” Gligorov said. The cabinet session to adopt the draft budget and send it to parliament was postponed several times. The legal deadline for this was November 1. Now the parliament has until December 15 to adopt the new budget. Finance Minister Mirko Cvetkovic in news conference after the cabinet session today (FoNet)

Cabinet adopts 2008 budget draft

But reports after the session indicate that contrary to the memorandum, the wages in the public sector will not freeze, but will continue to be harmonized with the inflation figure.

Proposed budget revenues for next year are expected to be at RSD 639.6bn with a deficit of about RSD 14.3bn.

Ahead of the session today, economist with the Institute for World Economy in Vienna Vladimir Gligorov, told B92 that the budget is expected to increase because of the coming elections in 2008.

“The suggestion is for the wages to have certain increases in the fund, with the idea that better elections results will be achieved in that way."

"There will be some strategic wage increases, and pension increases were promised as well, and also, at the end of this year and the beginning of next, pre-election and holiday bonuses are also on the agenda,” Gligorov said.

The cabinet session to adopt the draft budget and send it to parliament was postponed several times. The legal deadline for this was November 1.

Now the parliament has until December 15 to adopt the new budget.