Government adopts 2012 draft budget review

The Serbian government adopted the 2012 draft budget review and a package of 12 laws aimed at regulating the country's public finances.

Izvor: Tanjug

Monday, 10.09.2012.

16:44

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BELGRADE The Serbian government adopted the 2012 draft budget review and a package of 12 laws aimed at regulating the country's public finances. Their goal is to prevent Serbia from facing a financial collapse, the government announced after its session on Monday in Belgrade. Government adopts 2012 draft budget review Prime Minister Ivica Dacic pointed out that the measures would make room for EUR 1 billion and entail drastic cuts by reduction of unnecessary government expenditures, including the shutdown of various agencies, directorates and funds. He announced that the measures will stop excessive expenditures in the country and prevent it from going bankrupt, and the work on the strategy and the development plan would continue simultaneously so as to ensure economic growth and an increase in the employment rate. Dacic said that excise duty and taxes would increase minimally and added that there will be no dismissals in the public sector, but that salaries and pensions will not continue increasing according to plans but in keeping with the realistic possibilities. The government intends to protect the groups which suffered most because of the crisis, which means that there will be no freezing of salaries and pensions, he noted. Serbian Minister of Finance and Economy Mladjan Dinkic said that measures aim to reduce the consolidated budget deficit from the current 7.1 percent to 6.7 percent by the end of the year. Dinkic underscored that a delay in the fiscal consolidation would bring Serbia very close to the Greek scenario. According to him, the program aimed at stopping the crisis and reducing the budget deficit would also entail a drop in the pace of public debt growth which will continue increasing by default in the forthcoming period and eventually stop in 2014. The measures envisage annulment of 130 para-fiscal taxes which will take some load off the Serbian economy, Dinkic said. The Serbian parliament should launch a parliament debate on the draft budget review, Tanjug learned in the Serbian parliament on Monday. (FoNet) Tanjug

Government adopts 2012 draft budget review

Prime Minister Ivica Dačić pointed out that the measures would make room for EUR 1 billion and entail drastic cuts by reduction of unnecessary government expenditures, including the shutdown of various agencies, directorates and funds.

He announced that the measures will stop excessive expenditures in the country and prevent it from going bankrupt, and the work on the strategy and the development plan would continue simultaneously so as to ensure economic growth and an increase in the employment rate.

Dačić said that excise duty and taxes would increase minimally and added that there will be no dismissals in the public sector, but that salaries and pensions will not continue increasing according to plans but in keeping with the realistic possibilities.

The government intends to protect the groups which suffered most because of the crisis, which means that there will be no freezing of salaries and pensions, he noted.

Serbian Minister of Finance and Economy Mlađan Dinkić said that measures aim to reduce the consolidated budget deficit from the current 7.1 percent to 6.7 percent by the end of the year.

Dinkić underscored that a delay in the fiscal consolidation would bring Serbia very close to the Greek scenario.

According to him, the program aimed at stopping the crisis and reducing the budget deficit would also entail a drop in the pace of public debt growth which will continue increasing by default in the forthcoming period and eventually stop in 2014.

The measures envisage annulment of 130 para-fiscal taxes which will take some load off the Serbian economy, Dinkić said.

The Serbian parliament should launch a parliament debate on the draft budget review, Tanjug learned in the Serbian parliament on Monday.

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