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The Government of the Republic of Serbia

In the service of citizens

More funding for local governments in 2011

Belgrade, 14 December 2010

Deputy Prime Minister for European Integration and Minister of Science and Technological Development Bozidar Djelic said today that the budget plan for 2011 envisages increasing transfers to local governments by 28%.

Attending an “Underdeveloped Areas – a Chance for Investors” gathering held at the Palace of Serbia, Djelic explained that this means that in 2011 municipalities will receive RSD 32 billion, instead of RSD 25 billion that they received this year.

He recalled that the government set aside an additional RSD 1 billion for local governments for this year, of which 50% is intended for underdeveloped areas.

Djelic stressed the importance of cooperation with the EU, especially regarding the relevant funds, which should be used for the development of underdeveloped areas.

The Deputy Prime Minister named three projects as examples of excellent cooperation between the European Commission and the Serbian government, including the project worth €17.5 million for the development of south and southwest Serbia, whose implementation will begin in spring 2011.

The second project, worth €18.5 million is related to environmental protection in underdeveloped communities, he said, adding that the third project is the Danube strategy that was presented yesterday within which Golubac municipality received €18.5 million from the EU budget.

Head of EU Delegation in Serbia Vincent Degert announced further support to Serbia's development and said that the European Commission wants to see Serbia developed as a whole.

He presented the principles for participation of municipalities in European funds and added that to obtain EU funding municipalities need not only ideas but also concrete projects.

The gathering, in which presidents of 48 municipalities took part, was organised by the Office for Sustainable Development of Underdeveloped Areas.

The meeting was opened by Minister without Portfolio Sulejman Ugljanin. The participants included President Boris Tadic, First Deputy Prime Minister and Minister of the Interior Ivica Dacic, Minister of Trade and Services Slobodan Milosavljevic and Minister for National Investment Plan Verica Kalanovic.