Q:
A:
2009 budget envisages deficit of 1.5% of GDP
Belgrade,
6 December 2008
Serbian Minister of Finance Diana Dragutinovic today stated that the government has adopted the budget law for 2009, which envisages revenues of RSD 698.7 billion and expenditures of RSD 748.3 billion.
Diana Dragutinovic at today's press conference
At a press conference following the government session, Dragutinovic said that the budget deficit will be RSD 49.6 billion i.e. 1.5% of the GDP.
According to her the budget is based on the implementation of the Transitional Trade Agreement with the EU, reduction of taxes on vehicles and the government's participation in the joint company with Fiat with approximately €200 million.
She said that the 10% raise in pensions is still valid, but it will probably not occur if the global financial crisis continues.
The Minister specified that the budget envisages more non-tax than tax revenues, saying that the government will increase the excise duty on oil, tobacco, beer and coffee, as well as the payout of state owned companies' dividends in order to compensate for losses.
Dragutinovic also said the 2009 budget does not envisage the expansion of a collective agreement.
The government today adopted financial plans for all social insurance organisations and a Memorandum on Budget, Economic and Fiscal Policy for 2009, which includes projections for 2010 and 2011 as well.
She added that the law on the use of official vehicles was also adopted.
The government expects that the GDP growth rate will reduce by 3% to 3.5% and therefore the number of unemployed will reach 1 million, warned Dragutinovic.
As for Corridor 10, she said that RSD 10 million will be distributed to three ministries and Serbia also expects funds from the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank.
According to her, approximately RSD 12 billion will be earmarked from the National Investment Plan in this respect.
According to her the budget is based on the implementation of the Transitional Trade Agreement with the EU, reduction of taxes on vehicles and the government's participation in the joint company with Fiat with approximately €200 million.
She said that the 10% raise in pensions is still valid, but it will probably not occur if the global financial crisis continues.
The Minister specified that the budget envisages more non-tax than tax revenues, saying that the government will increase the excise duty on oil, tobacco, beer and coffee, as well as the payout of state owned companies' dividends in order to compensate for losses.
Dragutinovic also said the 2009 budget does not envisage the expansion of a collective agreement.
The government today adopted financial plans for all social insurance organisations and a Memorandum on Budget, Economic and Fiscal Policy for 2009, which includes projections for 2010 and 2011 as well.
She added that the law on the use of official vehicles was also adopted.
The government expects that the GDP growth rate will reduce by 3% to 3.5% and therefore the number of unemployed will reach 1 million, warned Dragutinovic.
As for Corridor 10, she said that RSD 10 million will be distributed to three ministries and Serbia also expects funds from the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank.
According to her, approximately RSD 12 billion will be earmarked from the National Investment Plan in this respect.
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