PM: 2012 budget is "socially responsible"

Serbian Prime Minister Mirko Cvetkovic said on Monday in Belgrade the draft budget for 2012 included "social responsibility and reform elements". Presenting the 2012 budget bill to the parliament, he stated he expected the debate to result in a document that would allow Serbia to adequately face the economic crisis and cope with it by suffering the least possible number of negative effects. PM: 2012 budget is "socially responsible" The bill was prepared in conditions of slow economic growth, the crisis in the eurozone and expected GDP growth of 1.5 percent in 2012, the prime minister pointed out. The budget revenue is expected at RSD 750 billion, while expenditure should be at RSD 890 billion, so the deficit is projected at around RSD 140 billion, he noted, adding that the deficit will be financed mostly from loans. At the consolidated level, which includes local governments, Vojvodina and organizations with mandatory social insurance, the deficit will be RSD 152 billion, or 4.25 percent of the GDP, he explained. The deficit is lower than the fiscal rules allow, which reduces the need for loans in 2012, Cvetkovic believes. According to him, almost the entire deficit will be used for capital investments, like boosting domestic demand to raise economic activity in the country. The funds needed to raise salaries and pensions by 5.5 percent have also been secured, he said, adding that the raises will happen in April and October. The new budget also includes funds to continue assisting the economy, agriculture and construction industry, and significant savings have been made regarding discretionary expenditure, he stated. Commenting on the budget's structure, he said 41.8 percent of expenditure was meant for social security, 15.3 percent for defense, public order and security, 15.3 percent for education and science, 10.4 percent for stimulation, 3.8 percent for transfers to other levels of government, 3 percent for administrative costs and 10.4 percent for other functions. This year's adoption of the budget should not be a problem, unlike in previous years, because all of the parties in the government coalition have stated they are going to support the bill. (Beta, file) Tanjug

PM: 2012 budget is "socially responsible"

The bill was prepared in conditions of slow economic growth, the crisis in the eurozone and expected GDP growth of 1.5 percent in 2012, the prime minister pointed out.

The budget revenue is expected at RSD 750 billion, while expenditure should be at RSD 890 billion, so the deficit is projected at around RSD 140 billion, he noted, adding that the deficit will be financed mostly from loans.

At the consolidated level, which includes local governments, Vojvodina and organizations with mandatory social insurance, the deficit will be RSD 152 billion, or 4.25 percent of the GDP, he explained.

The deficit is lower than the fiscal rules allow, which reduces the need for loans in 2012, Cvetković believes.

According to him, almost the entire deficit will be used for capital investments, like boosting domestic demand to raise economic activity in the country.

The funds needed to raise salaries and pensions by 5.5 percent have also been secured, he said, adding that the raises will happen in April and October.

The new budget also includes funds to continue assisting the economy, agriculture and construction industry, and significant savings have been made regarding discretionary expenditure, he stated.

Commenting on the budget's structure, he said 41.8 percent of expenditure was meant for social security, 15.3 percent for defense, public order and security, 15.3 percent for education and science, 10.4 percent for stimulation, 3.8 percent for transfers to other levels of government, 3 percent for administrative costs and 10.4 percent for other functions.

This year's adoption of the budget should not be a problem, unlike in previous years, because all of the parties in the government coalition have stated they are going to support the bill.