Q:
A:
Parliament adopts changes to Laws on Budget and Budgetary System
Belgrade,
21 July 2005
The Serbian parliament adopted today a bill on changes and amendments to the Law on Serbia’s 2005 Budget, by which for the first time the budget income will exceed its expenses, by a total of 32.2 billion dinars. A bill on changes and amendments to the Law on Budgetary System was also adopted.
The bill on changes and amendments to the Law on Serbia’s 2005 Budget was adopted by a majority vote.
The budget income will be increased by 37 billion dinars, and will total about 433 billion, whereas expenses will amount to approximately 401 billion dinars.
Out of the projected 32 billion dinar surplus, 5.5 billion will be allocated as loans to various development programmes, 23.5 billion will be spent on the public debt write-off, and 3.2 billion will be used as a basis for fiscal adjustments against last year.
The largest portion of loan funds will be used to spur self-employment and the opening of approximately 7,000 new jobs, and for financing imports, home loans for young couples, and development of Kragujevac, Nis and Vranje municipalities.
When it comes to the public debt write-off, 22 billion dinars will be designated for old foreign currency savings and loans for Serbia’s economic revival, and 1.5 billion for the write-off of the capital amount of public debt.
Serbian parliament MPs adopted today a bill on changes and amendments to the Law on Budgetary System, so that from now on, the public debt write-off will still be recorded, however not as a budgetary expense. It also envisages the forming of the Managing Board of the Serbian Treasury.
The bill on changes and amendments to the Law on Budgetary System was adopted by a majority vote.
Because foreign loan money must be repaid, loan income will not be recorded as a budget income, neither will loan repayments be recorded as expenses.
Both incomes and expenses are recorded “below the line”. State loans for certain purposes that will be repaid are not recorded as expenses, because once they are repaid in a few years, the expense will be written-off.
The aim of the proposal is to harmonise the settlement of budget surplus or deficit with the ones in EU countries, the USA, Canada and Japan.
Instead of the two current institutions within the Ministry of Finance, which are the Public Revenue Service of Serbia and the Serbian Treasury, there will only be one, namely the Managing Board of the Serbian Treasury, which is to begin its work on August 1.
The terms primary deficit and primary surplus were introduced into legislation, the latter indicating the interest on public debt at the moment the final budget outcome is calculated.
The terms consolidated deficit and consolidated surplus were also introduced. A consolidated deficit, or simply deficit, indicates the total state balance, namely that of the Republic, local governments and organisations with obligatory social insurance.
The budget income will be increased by 37 billion dinars, and will total about 433 billion, whereas expenses will amount to approximately 401 billion dinars.
Out of the projected 32 billion dinar surplus, 5.5 billion will be allocated as loans to various development programmes, 23.5 billion will be spent on the public debt write-off, and 3.2 billion will be used as a basis for fiscal adjustments against last year.
The largest portion of loan funds will be used to spur self-employment and the opening of approximately 7,000 new jobs, and for financing imports, home loans for young couples, and development of Kragujevac, Nis and Vranje municipalities.
When it comes to the public debt write-off, 22 billion dinars will be designated for old foreign currency savings and loans for Serbia’s economic revival, and 1.5 billion for the write-off of the capital amount of public debt.
Serbian parliament MPs adopted today a bill on changes and amendments to the Law on Budgetary System, so that from now on, the public debt write-off will still be recorded, however not as a budgetary expense. It also envisages the forming of the Managing Board of the Serbian Treasury.
The bill on changes and amendments to the Law on Budgetary System was adopted by a majority vote.
Because foreign loan money must be repaid, loan income will not be recorded as a budget income, neither will loan repayments be recorded as expenses.
Both incomes and expenses are recorded “below the line”. State loans for certain purposes that will be repaid are not recorded as expenses, because once they are repaid in a few years, the expense will be written-off.
The aim of the proposal is to harmonise the settlement of budget surplus or deficit with the ones in EU countries, the USA, Canada and Japan.
Instead of the two current institutions within the Ministry of Finance, which are the Public Revenue Service of Serbia and the Serbian Treasury, there will only be one, namely the Managing Board of the Serbian Treasury, which is to begin its work on August 1.
The terms primary deficit and primary surplus were introduced into legislation, the latter indicating the interest on public debt at the moment the final budget outcome is calculated.
The terms consolidated deficit and consolidated surplus were also introduced. A consolidated deficit, or simply deficit, indicates the total state balance, namely that of the Republic, local governments and organisations with obligatory social insurance.
-
Kostolac, 14 July 2025First solar power plant Petka in Kostolac put into trial operation
-
Belgrade, 11 July 2025Potential for improving cooperation with Belarus in many areas
-
Požega, 5 July 2025Section of Pakovraće - Požega highway officially opened
-
Belgrade, 2 July 2025Technical specifications defined for Serbia-Hungary oil pipeline
-
Belgrade, 30 June 2025IMF confirms Serbia successfully implementing all agreed reforms
-
Belgrade, 27 June 2025Double Taxation Avoidance Agreement with Germany signed
-
Kostolac, 25 June 2025Construction of Kostolac wind farm nearing completion
-
Belgrade, 24 June 2025Government supports request for new postponement of sanctions against NIS
-
Belgrade, 23 June 2025Procedures to facilitate sale of Serbian products to China to be accelerated
-
Belgrade, 21 June 2025Serbia receives first funds under Growth Plan for the Western Balkans