Municipalities on brink of bankruptcy
The presidents of 40 of the least developed municipalities have warned that if central budget subsidies to their municipalities are cut, they risk bankruptcy.
Friday, 19.06.2009.
13:02
The presidents of 40 of the least developed municipalities have warned that if central budget subsidies to their municipalities are cut, they risk bankruptcy. Nova Crnja Municipal President Pera Milankov told B92 that these municipalities were demanding a meeting with Prime Minister Mirko Cvetkovic, Finance Minister Diana Dragutinovic and Economy Minister Mladjan Dinkic. Municipalities on brink of bankruptcy “That’s pocket money for the state—we are talking about EUR 7.5mn. I don’t have to tell you how negligible an amount that is for the Republic of Serbia, and our municipalities take up a third of the territory of Serbia,” Milankov said. “We take up a minimal amount financially. I do not think it would by any problem for the state to continue paying this amount of money without bringing themselves, or us, since we too are part of the authorities, into an awkward position,” he said. The 2009 budget review, which foresaw a cut in spending of EUR 161mn, saw subsidies to under-developed municipalities reduced by EUR 8.4mn, pushing them to the edge of bankruptcy.
Municipalities on brink of bankruptcy
“That’s pocket money for the state—we are talking about EUR 7.5mn. I don’t have to tell you how negligible an amount that is for the Republic of Serbia, and our municipalities take up a third of the territory of Serbia,” Milankov said.“We take up a minimal amount financially. I do not think it would by any problem for the state to continue paying this amount of money without bringing themselves, or us, since we too are part of the authorities, into an awkward position,” he said.
The 2009 budget review, which foresaw a cut in spending of EUR 161mn, saw subsidies to under-developed municipalities reduced by EUR 8.4mn, pushing them to the edge of bankruptcy.
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