Financial committee accepts 2013 budget bill

BELGRADE The Serbian Parliament Committee on Finance met on Wednesday in Belgrade and decided to adopt the 2013 draft budget bill. The bill was supported by MPs from the government coalition, while the opposition Democratic Party (DS) and Liberal Democratic Party (LDP) criticized it. Financial committee accepts 2013 budget bill Minister of Finance Mladjan Dinkic and head of the Fiscal Council Pavle Petrovic stated during the meeting conflicting views on the projected budget deficit in 2013. Dinkic refuted Petrovic's view that the deficit will reach 4.3 percent of GDP instead of the expected 3.6, because expenditure will exceed projections by RSD 25 billion, stressing there was no basis for such projections. The proposal by the fiscal council for the government to conrol the budget's implementation each quarter is acceptable, as well as the steps to enable budget control in the way it was projected, Dinkic noted. Former PM Mirko Cvetkovic (DS) said the fiscal council and the International Monetary Fund (IMF) had a negative opinion of the bill and did not believe it could be reduced to 3.5 percent. The IMF believes it is possible that the deficit will exceed four percent, which is bad, Cvetkovic noted, adding that the IMF view was relevant to the World Bank, which could supply Serbia with loans with one percent interest rates. "I see no savings in public procurement. I see no savings from shutting down agencies. Two things have been done: taxes have been raised and salaries limited, and that will mean poorer living standard during the inflation," Cvetkovic pointed out. United Regions of Serbia parliament group leader Vladimir Ilic suggested the government should limit percentage-wise the growth of salaries on all levels, making the private sector more attractive for employment. Social Democratic Party of Serbia MPs said they would support the bill, describing it as radical and brave, but adding that the burden of the crisis would fall on those who have the least. LDP MP Ivan Andric said it was commendable that the budget would be adopted on time, but that it was unfortunately impossible to implement, adding that the LDP therefore felt a review was inevitable. The debate in parliament regarding the bill should start on November 23. (Beta, file) Tanjug

Financial committee accepts 2013 budget bill

Minister of Finance Mlađan Dinkić and head of the Fiscal Council Pavle Petrović stated during the meeting conflicting views on the projected budget deficit in 2013.

Dinkić refuted Petrović's view that the deficit will reach 4.3 percent of GDP instead of the expected 3.6, because expenditure will exceed projections by RSD 25 billion, stressing there was no basis for such projections.

The proposal by the fiscal council for the government to conrol the budget's implementation each quarter is acceptable, as well as the steps to enable budget control in the way it was projected, Dinkić noted.

Former PM Mirko Cvetković (DS) said the fiscal council and the International Monetary Fund (IMF) had a negative opinion of the bill and did not believe it could be reduced to 3.5 percent.

The IMF believes it is possible that the deficit will exceed four percent, which is bad, Cvetković noted, adding that the IMF view was relevant to the World Bank, which could supply Serbia with loans with one percent interest rates.

"I see no savings in public procurement. I see no savings from shutting down agencies. Two things have been done: taxes have been raised and salaries limited, and that will mean poorer living standard during the inflation," Cvetković pointed out.

United Regions of Serbia parliament group leader Vladimir Ilić suggested the government should limit percentage-wise the growth of salaries on all levels, making the private sector more attractive for employment.

Social Democratic Party of Serbia MPs said they would support the bill, describing it as radical and brave, but adding that the burden of the crisis would fall on those who have the least.

LDP MP Ivan Andrić said it was commendable that the budget would be adopted on time, but that it was unfortunately impossible to implement, adding that the LDP therefore felt a review was inevitable.

The debate in parliament regarding the bill should start on November 23.