Draft budget sent to govt.

The Finance Ministry has finalized the draft budget today and sent it to the government for adoption, B92 understands. The government will consider the proposal at its next meeting. Draft budget sent to govt. How much each ministry will get and which ministry will have to make the biggest cutbacks is still unclear. Speculation has been rife in recent days that dissatisfaction in certain parties at the distribution of state funds was the chief reason for the delay in approving the budget. Neither Prime Minister Mirko Cvetkovic nor Finance Minister Diana Dragutinovic have been willing to comment on the reasons for the hold-up. Reports suggest that G17 Plus was most unhappy at the distribution of funds. However, Economy Minister Mladjan Dinkic dismissed the existence of any dispute, stating that he had not even seen the budget yet, and that he would give his opinion once he had read it. The Democratic Party (DS) has also dismissed the talk of a rift within the governing coalition. “It’s typical media speculation. It’s nothing to do with the parties, but the IMF. It’s nothing to do with ministries, it comes down to the fact that we’ll all have to cut our spending. It’s something we’ll all have to face, just like the rest of the world. There won’t be as much money as we expected,” said DS official Jelena Trivan. Nor was Socialist Party of Serbia (SPS) official Branko Ruzic willing to go into any great detail over the rumored bust-up within the government. “I don’t believe there’s a disagreement. Certain ministries have legitimate demands for their budgets, though it must be made clear that the only framework those ministries operate within is the government. And that is who adopts the budget,“ underlined Ruzic. The draft budget submitted to the government envisions spending of EUR 8.5bn, with revenue forecast at EUR 8bn, leaving a budget deficit of 1.5 percent GDP. Under the law on the budget system, the government had been due to submit the budget to parliament for adoption by November 1, and parliament to adopt it by December 15. If the budget fails to be adopted by the end of the year, Serbia would have to move to temporary financing, which could jeopardize the agreement with the IMF. The government in session (Beta, archive) Parliament expecting budget next week Parliamentary Speaker Slavica Djukic-Dejanovic said earlier that she had hoped that the budget would be presented to parliament next week, but the government has stated that the draft has yet to be finalized, particularly issues related to savings in 2009. Prime Minister Mirko Cvetkovic declined to comment yesterday as to whether there were any problems with getting the draft budget completed. Djukic-Dejanovic said that a parliamentary session on the budget draft could not be scheduled until the current one came to an end. “Obviously we need to bring this session to some kind of logical end, at least one set of laws—preferably the court laws—to bring this session to a close. We’ll probably have to end it in order to schedule the no confidence vote, and from there, go on to the budget,” she said. “We expect the budget to arrive in the first half of next week, and, at the same time that the debate on the no confidence motion is going on and the session is ending, MPs can familiarize themselves with the budget draft in order to prepare to submit their amendments,” Djukic-Dejanovic said. G17 Plus official Suzana Grubjesic told B92 that the budget was due to be adopted on December 15 because of the earlier agreement reached with the IMF. “The newly-established IMF arrangement depends on the date the budget is adopted. The government is expected to approve it next week, and submit it to parliamentary procedure immediately,” Grubjesic said. “Of course, it is not easy to make a budget when there is not enough money. It is easy to make a budget when there is enough income and less spending, but when there is a lack of revenue, and spending is increasing, then it’s really difficult to make a budget. And that’s why there’s a deadlock and we haven’t received the budget yet,” she said.

Draft budget sent to govt.

How much each ministry will get and which ministry will have to make the biggest cutbacks is still unclear. Speculation has been rife in recent days that dissatisfaction in certain parties at the distribution of state funds was the chief reason for the delay in approving the budget.

Neither Prime Minister Mirko Cvetković nor Finance Minister Diana Dragutinović have been willing to comment on the reasons for the hold-up.

Reports suggest that G17 Plus was most unhappy at the distribution of funds.

However, Economy Minister Mlađan Dinkić dismissed the existence of any dispute, stating that he had not even seen the budget yet, and that he would give his opinion once he had read it.

The Democratic Party (DS) has also dismissed the talk of a rift within the governing coalition.

“It’s typical media speculation. It’s nothing to do with the parties, but the IMF. It’s nothing to do with ministries, it comes down to the fact that we’ll all have to cut our spending. It’s something we’ll all have to face, just like the rest of the world. There won’t be as much money as we expected,” said DS official Jelena Trivan.

Nor was Socialist Party of Serbia (SPS) official Branko Ružić willing to go into any great detail over the rumored bust-up within the government.

“I don’t believe there’s a disagreement. Certain ministries have legitimate demands for their budgets, though it must be made clear that the only framework those ministries operate within is the government. And that is who adopts the budget,“ underlined Ružić.

The draft budget submitted to the government envisions spending of EUR 8.5bn, with revenue forecast at EUR 8bn, leaving a budget deficit of 1.5 percent GDP.

Under the law on the budget system, the government had been due to submit the budget to parliament for adoption by November 1, and parliament to adopt it by December 15.

If the budget fails to be adopted by the end of the year, Serbia would have to move to temporary financing, which could jeopardize the agreement with the IMF.

Parliament expecting budget next week

Parliamentary Speaker Slavica Đukić-Dejanović said earlier that she had hoped that the budget would be presented to parliament next week, but the government has stated that the draft has yet to be finalized, particularly issues related to savings in 2009.

Prime Minister Mirko Cvetković declined to comment yesterday as to whether there were any problems with getting the draft budget completed.

Đukić-Dejanović said that a parliamentary session on the budget draft could not be scheduled until the current one came to an end.

“Obviously we need to bring this session to some kind of logical end, at least one set of laws—preferably the court laws—to bring this session to a close. We’ll probably have to end it in order to schedule the no confidence vote, and from there, go on to the budget,” she said.

“We expect the budget to arrive in the first half of next week, and, at the same time that the debate on the no confidence motion is going on and the session is ending, MPs can familiarize themselves with the budget draft in order to prepare to submit their amendments,” Đukić-Dejanović said.

G17 Plus official Suzana Grubješić told B92 that the budget was due to be adopted on December 15 because of the earlier agreement reached with the IMF.

“The newly-established IMF arrangement depends on the date the budget is adopted. The government is expected to approve it next week, and submit it to parliamentary procedure immediately,” Grubješić said.

“Of course, it is not easy to make a budget when there is not enough money. It is easy to make a budget when there is enough income and less spending, but when there is a lack of revenue, and spending is increasing, then it’s really difficult to make a budget. And that’s why there’s a deadlock and we haven’t received the budget yet,” she said.