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The Government of the Republic of Serbia

In the service of citizens

Projected budget for 2009 appropriate measure for country’s stability

Belgrade, 8 December 2008

Deputy Prime Minister Bozidar Djelic last night stated that the projected budget for 2009 is an appropriate measure for maintaining the country’s stability in these hard times, adding that it will make sure that no category of citizens will be in danger next year.

Appearing on Radio Television Serbia, Djelic said that the 2009 budget could have been more restrictive, but that would have put certain categories of citizens in a much harder position, therefore the government decided against that.

He noted that Serbia has a fall in the proportion of public spending in the GDP and a fall in deficit, adding that it will have one of the lowest deficits in Europe next year.

Djelic, who is also Minister of Science and Technological Development, said that with 0.3% of GDP set aside for science, Serbia holds the lowest position in Europe. However he added that science will not suffer because of that since no programmes will be cancelled or people dismissed from work, although this sector will have to start making savings, just like all the others.

As for today’s meeting of the EU Council of Ministers, Djelic said he expects words of encouragement for Serbia, though the Transitional Trade Agreement will not be unfrozen due to Holland’s adamant stance.

Nothing will change there in the next several weeks, but that does not mean our EU integration process will be at a standstill, said Djelic, adding that Serbia will implement the Stabilisation and Association Agreement which will help to halve the duty on car imports from January, as well as abolish the duty on a number of raw materials.

According to him, Europe has designated €620 million for assistance to Western Balkan economies, including Serbia.

When we add to that RSD 5–10 billion from our budget for state guarantees of the liquidity of Serbian companies, it is clear we will not allow our economy to suffer in any way, said Djelic.