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The Government of the Republic of Serbia

In the service of citizens

Constitution sets new frameworks for country's development

Backa Palanka, 27 October 2006

Serbian Minister of Finance Mladjan Dinkic said during his visit to Backa Palanka today that the new Constitution of Serbia sets new frameworks for the country's development by giving clear definitions of efficient forms of ownership and economic activity.

Dinkic opened a new modernly equipped customs terminal in Backa Palanka at the facility of the Sintelon factory, moved from the town's centre. He announced the continuation of modernisation of the customs service by introducing the so-called single electronic window (SEW), which will shorten the customs procedure.

Addressing businessmen from Backa Palanka, the Minister stressed that according to new constitutional frameworks, the Autonomous Province of Vojvodina is required to support new investments with €180 million every year.

According to him, judging by flows in the period from January to September this year, the projected annual inflation of 9.3% will be considerably lower and will range between 7% and 7.5%, while it will be reduced to 4% by end of 2009.

A negative inflation rate of -0.4% was recorded in October, and in the period from January to May inflation was 5%, Dinkic stressed and repeated that this year's high budgetary surplus is aimed at cutting the country's foreign debt, which will be reduced to 30% of GDP by premature repayment.

The Minister added that Serbia has reached a GDP of 4,000 dollars per capita, which is more than in the neighbouring countries which will soon become EU members.

Dinkic also announced new stimulant measures for encouraging exports such as low tax rates, and sums from €10,000 to €20,000 for companies for each person they employ in Greenfield investments. He added that special relief in employment will be provided by the further reduction of income tax from 14% to 12% with a 5,000 dinar threshold.

The Minister of Finance also visited Crvenka today where he inaugurated works on the canal for disposal of wastewater from local factories, in whose construction €54 million will be invested.

Dinkic told a gathering of citizens that the construction of this canal is a debt the government owes to the residents of Crvenka, and added that solving the long standing problem of wastewater will benefit the city, and surrounding areas.

The company “Graditelj” from Novi Sad will carry out the construction works on the project which will be completed within 75 days, and funds have been secured by the Serbian Ministry of Agriculture, Forestry and Water Management.

Dinkic called upon citizens to cast their votes at the referendum on the new Constitution because Serbia finally needs to define herself as a state. He pointed to the fact that we have a national anthem and a coat-of-arms and we cannot be a state without a constitution, so there is no reason for all citizens not to go to the polls, so that Serbia also gets that hallmark which all states have.

Later Dinkic also visited Ruski Krstur, where he talked with local businesspeople on the construction of an industrial zone and the opening of a cattle farm.