Government adopts 2009 budget draft

The Serbian government met in Belgrade on Saturday to adopt the draft 2009 budget. Serbia's state coffers will next year see RSD 698.7bn of income, and RSD 748.3bn of expenditure, according to this proposal. Government adopts 2009 budget draft That means that the projected deficit will reach RSD 49.6bn, in line with the 1.5 percent of the GDP mark, agreed on previously with the IMF. The government will now send its proposal to parliament, which will debate and adopt the new budget. The Serbian government expects that economic activities will be slowed down in 2009 and that the GDP will record lower growth, at 3-3.5 percent, with the jobless figure expected to reach around one million, Finance Minister Diana Dragutinovic told reporters after the cabinet session. These will be the secondary effects of the global financial crisis which has already swept over the Serbian economy, in particular the industrial production, she continued. Presenting the budget draft, Dragutinovic said that it was not satisfactory mostly for the ministries of defense, science, the environment, and agriculture. But, she stressed, "there must be cuts in public spending next year". Speaking about the funds planned for Corridor 10, Dragutinovic said the money will be distributed among three ministries – a total of RSD 10bn. The budget envisages around RSD 12bn for the National Investment Plan (NIP) next year, as opposed to the RSD 47bn dinars this year, the minister continued. Around 70 percent of the budget spending is planned for the salaries of budget beneficiaries, various social payments and subsidies, Dragutinovic said, which, according to her, "shows that Serbian citizens have been placed in the forefront". Also in Belgrade on Saturday, Head of the World Bank Office Simon Gray reacted to the news by telling Tanjug that it is "very important the Serbian government has adopted a proposed budget that does not go over 1.5 percent of the GDP". "It is necessary that the Serbian budget for 2009 should also provide funds for helping the poor, who are mostly affected by the current economic crisis," Gray said. The cabinet session this Saturday (Tanjug)

Government adopts 2009 budget draft

That means that the projected deficit will reach RSD 49.6bn, in line with the 1.5 percent of the GDP mark, agreed on previously with the IMF.

The government will now send its proposal to parliament, which will debate and adopt the new budget.

The Serbian government expects that economic activities will be slowed down in 2009 and that the GDP will record lower growth, at 3-3.5 percent, with the jobless figure expected to reach around one million, Finance Minister Diana Dragutinović told reporters after the cabinet session.

These will be the secondary effects of the global financial crisis which has already swept over the Serbian economy, in particular the industrial production, she continued.

Presenting the budget draft, Dragutinović said that it was not satisfactory mostly for the ministries of defense, science, the environment, and agriculture. But, she stressed, "there must be cuts in public spending next year".

Speaking about the funds planned for Corridor 10, Dragutinović said the money will be distributed among three ministries – a total of RSD 10bn.

The budget envisages around RSD 12bn for the National Investment Plan (NIP) next year, as opposed to the RSD 47bn dinars this year, the minister continued.

Around 70 percent of the budget spending is planned for the salaries of budget beneficiaries, various social payments and subsidies, Dragutinović said, which, according to her, "shows that Serbian citizens have been placed in the forefront".

Also in Belgrade on Saturday, Head of the World Bank Office Simon Gray reacted to the news by telling Tanjug that it is "very important the Serbian government has adopted a proposed budget that does not go over 1.5 percent of the GDP".

"It is necessary that the Serbian budget for 2009 should also provide funds for helping the poor, who are mostly affected by the current economic crisis," Gray said.