Q:
A:
Investing in industrial parks and construction of tourism infrastructure and apartments
Belgrade,
19 April 2006
Serbian Minister of Finance Mladjan Dinkic said today that on April 20 the Serbian government will examine a draft national investment plan, with the aim of using as efficiently as possible the privatisation surplus of €1 billion.
Mladjan Dinkic
Author:
Fonet
Addressing students of the Belgrade Faculty of Economics at a panel discussion themed "Serbia's economic policy in 2006", Dinkic said that it will be proposed that investments be used for forming industrial parks, renovation and building of tourism infrastructure and housing construction.
He said that the first project to be financed through the privatisation surplus should be tourist infrastructure on Stara Planina mountain.
Stating that with three privatisations alone over €1.3 billion will be gained, Dinkic denied the claims of some economists that the surplus used for investment will cause inflation.
According to him, the intention is to keep the greatest part of that money within the country and to employ domestic workforce.
The Minister of Finance said that the Ministry will propose to the Serbian parliament a bill on reducing tax and contributions to income of employees, by which the tax rate will be reduced from 14% to 12%. He said that this law should come into force next year and that it envisages tax relief on income of the young.
Although that will reduce budgetary revenues by €350 million, it is expected that these novelties have a positive impact on employment and balanced economic development in the country, Dinkic explained.
The Minister said that a tender for privatisation of the Serbian Oil Industry (NIS) will be most probably announced in September.
NIS should be privatised in three stages. In the first stage, 49% of the capital at the most will be privatised through recapitalisation, free distribution of shares to workers of NIS and sale.
Dinkic said the total revenues from privatisation of NIS minority share could reach €1 billion.
He said that the first project to be financed through the privatisation surplus should be tourist infrastructure on Stara Planina mountain.
Stating that with three privatisations alone over €1.3 billion will be gained, Dinkic denied the claims of some economists that the surplus used for investment will cause inflation.
According to him, the intention is to keep the greatest part of that money within the country and to employ domestic workforce.
The Minister of Finance said that the Ministry will propose to the Serbian parliament a bill on reducing tax and contributions to income of employees, by which the tax rate will be reduced from 14% to 12%. He said that this law should come into force next year and that it envisages tax relief on income of the young.
Although that will reduce budgetary revenues by €350 million, it is expected that these novelties have a positive impact on employment and balanced economic development in the country, Dinkic explained.
The Minister said that a tender for privatisation of the Serbian Oil Industry (NIS) will be most probably announced in September.
NIS should be privatised in three stages. In the first stage, 49% of the capital at the most will be privatised through recapitalisation, free distribution of shares to workers of NIS and sale.
Dinkic said the total revenues from privatisation of NIS minority share could reach €1 billion.
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