MPs discuss 2011 budget

Serbian MPs have begun a general debate on the government draft budget for 2011. The government is planning on spending RSD 120.5bn more than it will earn. Envisaged revenue is RSD 724.4bn, while expenditures should be RSD 844.9bn. MPs discuss 2011 budget Although it means that Serbia will continue to spend more that it will actually earn, Finance Minister Diana Dragutinovic points out that the draft budget for 2011 will reduce budget deficit in accordance with recently adopted fiscal responsibility regulations. Prime Minister Mirko Cvetkovic said that the Serbian budget for 2011 included incentives and supported the industrial development and realization of infrastructure projects, that it was saving-oriented and therefore had a stabilizing function securing normal operation of the state and underlined that the budget was also socially-responsible since it offered protection to vulnerable citizens. “The next year’s budget is saving- and development-oriented and it is a realistic reflection of Serbia’s economic power and it will be a basis for the boost of a long-term economic development, continuation of reforms and investments into infrastructure,” he said during the parliament session. According to the PM, the government is accomplishing “serious results in achieving the most important national interests, such as vital functioning of the state and dignified life of the citizens”. “In the difficult year of 2010, the government has taken serious anti-crisis measures which prevented the collapse of the economy, shutdown of companies and banks and mass layoffs,” Cvetkovic pointed out. He added that implementation of a new economic growth model would begin in 2011 and that the draft budget would be a pillar of the economic policy which would enable the economy to stand on its own feet. Dragutinovic stressed that the draft budget was in accordance with fiscal regulations and that it would limit the budget deficit to 4.1 percent of GDP, reduce public spending, unfreeze wages and pensions and provide money for all social benefits envisaged by the law. She said that the budget required a “social cohesion” and called upon the MPs to vote in favor of the document. The MPs will also discuss proposals to make changes to the budget system, property tax, value added tax (VAT), excises, tax on the use, possession and transportation of goods and pension and disability insurance. The ethnic minorities’ parliamentary group, which usually does not support the budget, has announced that it will support the draft this time. Alliance of Vojvodina Hungarians (SVM) MP Balint Pastor says that the budget is finally in accordance with the Constitution because, aside from seven percent, three sevenths of the budget have been appropriated for capital expenditures in Vojvodina. “This is a sad day for the substitute players in the ruling coalition, since the SVM will vote for the budget because it happened for the first time that the government sent a draft in accordance with the Serbian Constitution to parliamentary procedure,” Pastor explained. Liberal Democratic Party (LDP) MP Ivan Andric said that the budget for 2011 was not development-oriented and stressed that their main objection was the fact that pension system reform had not started yet. Opposition MPs are not happy that the government was again late with submitting the draft budget, which forces them to write amendments to the laws that they do not even have the time to read. The Serbian parliament (Tanjug, file)

MPs discuss 2011 budget

Although it means that Serbia will continue to spend more that it will actually earn, Finance Minister Diana Dragutinović points out that the draft budget for 2011 will reduce budget deficit in accordance with recently adopted fiscal responsibility regulations.

Prime Minister Mirko Cvetković said that the Serbian budget for 2011 included incentives and supported the industrial development and realization of infrastructure projects, that it was saving-oriented and therefore had a stabilizing function securing normal operation of the state and underlined that the budget was also socially-responsible since it offered protection to vulnerable citizens.

“The next year’s budget is saving- and development-oriented and it is a realistic reflection of Serbia’s economic power and it will be a basis for the boost of a long-term economic development, continuation of reforms and investments into infrastructure,” he said during the parliament session.

According to the PM, the government is accomplishing “serious results in achieving the most important national interests, such as vital functioning of the state and dignified life of the citizens”.

“In the difficult year of 2010, the government has taken serious anti-crisis measures which prevented the collapse of the economy, shutdown of companies and banks and mass layoffs,” Cvetković pointed out.

He added that implementation of a new economic growth model would begin in 2011 and that the draft budget would be a pillar of the economic policy which would enable the economy to stand on its own feet.

Dragutinović stressed that the draft budget was in accordance with fiscal regulations and that it would limit the budget deficit to 4.1 percent of GDP, reduce public spending, unfreeze wages and pensions and provide money for all social benefits envisaged by the law.

She said that the budget required a “social cohesion” and called upon the MPs to vote in favor of the document.

The MPs will also discuss proposals to make changes to the budget system, property tax, value added tax (VAT), excises, tax on the use, possession and transportation of goods and pension and disability insurance.

The ethnic minorities’ parliamentary group, which usually does not support the budget, has announced that it will support the draft this time. Alliance of Vojvodina Hungarians (SVM) MP Balint Pastor says that the budget is finally in accordance with the Constitution because, aside from seven percent, three sevenths of the budget have been appropriated for capital expenditures in Vojvodina.

“This is a sad day for the substitute players in the ruling coalition, since the SVM will vote for the budget because it happened for the first time that the government sent a draft in accordance with the Serbian Constitution to parliamentary procedure,” Pastor explained.

Liberal Democratic Party (LDP) MP Ivan Andrić said that the budget for 2011 was not development-oriented and stressed that their main objection was the fact that pension system reform had not started yet.

Opposition MPs are not happy that the government was again late with submitting the draft budget, which forces them to write amendments to the laws that they do not even have the time to read.