Q:
A:
2009 budget deficit bigger after second budget revision
Belgrade,
22 December 2009
Serbian Finance Minister Diana Dragutinovic said today that according to the second 2009 budget revision the budget deficit has been increased by RSD 34.3 billion because revenues are lower than were planned in first revision.
Author:
Tanjug
Speaking at the Serbian Parliament about amendments to the 2009 budget law, Dragutinovic said that envisaged expenses of RSD 719.85 billion have stayed at the same level.
She stressed that revenues reduced from RSD 649.8 billion to RSD 614.98 billion, while the budget deficit has been revised to RSD 104.87 billion.
The Minister explained that the proposed revision retains the level of total public expenditure and adjusts revenues to lower estimates than the ones projected in the April revision.
Dragutinovic said that the main cause of the changes in revenue projections are significant macroeconomic alterations, above all a far bigger than expected drop in GDP, adding that the GDP will stand at minus 3% to minus 3.5%.
She said that the huge drop in agrarian consumption, conditioned by major adjustments to the balance of payments, was also one of the main factors contributing to lower than expected revenues.
She said that the balance of payments deficit will stand at nearly 6%.
She said that it was not possible to reduce overall expenditure due to which the government decided to increase the budget deficit within the framework that was agreed on with the IMF.
Dragutinovic said that under these conditions the 2009 deficit will be lower than in many EU countries, adding that the second budget revision best shows just how unpredictable were the conditions under which the Serbian government had to work, as well as that the fiscal policy was a good response to economic challenges.
Presenting the Bill affirming the Social Insurance Agreement between Serbia and Slovenia, she said that Serbia had been waiting for this Agreement for 18 years, noting that it will now enable a large number of people to exercise their rights.
The Agreement regulates the issues of the pension and disability insurance, health care, unemployment and maternity leave, Dragutinovic specified.
Elaborating the Bill on amendments to the Law on the Business Registers Agency she explained that, as of January 1, 2010, businesses will be required to submit their reports only to the Business Registers Agency.
She also announced that a financial report registry will be formed within the Agency, adding that another novelty is that the Agency will now have to publish the data on financial reports on its web page.
She stressed that revenues reduced from RSD 649.8 billion to RSD 614.98 billion, while the budget deficit has been revised to RSD 104.87 billion.
The Minister explained that the proposed revision retains the level of total public expenditure and adjusts revenues to lower estimates than the ones projected in the April revision.
Dragutinovic said that the main cause of the changes in revenue projections are significant macroeconomic alterations, above all a far bigger than expected drop in GDP, adding that the GDP will stand at minus 3% to minus 3.5%.
She said that the huge drop in agrarian consumption, conditioned by major adjustments to the balance of payments, was also one of the main factors contributing to lower than expected revenues.
She said that the balance of payments deficit will stand at nearly 6%.
She said that it was not possible to reduce overall expenditure due to which the government decided to increase the budget deficit within the framework that was agreed on with the IMF.
Dragutinovic said that under these conditions the 2009 deficit will be lower than in many EU countries, adding that the second budget revision best shows just how unpredictable were the conditions under which the Serbian government had to work, as well as that the fiscal policy was a good response to economic challenges.
Presenting the Bill affirming the Social Insurance Agreement between Serbia and Slovenia, she said that Serbia had been waiting for this Agreement for 18 years, noting that it will now enable a large number of people to exercise their rights.
The Agreement regulates the issues of the pension and disability insurance, health care, unemployment and maternity leave, Dragutinovic specified.
Elaborating the Bill on amendments to the Law on the Business Registers Agency she explained that, as of January 1, 2010, businesses will be required to submit their reports only to the Business Registers Agency.
She also announced that a financial report registry will be formed within the Agency, adding that another novelty is that the Agency will now have to publish the data on financial reports on its web page.
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