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The Government of the Republic of Serbia

In the service of citizens

Serbian government adopts revised budget proposal for 2011

Belgrade, 16 September 2011

The government adopted at its session today the revised budget proposal for 2011, consistent with the International Monetary Fund (IMF), under which budget deficit will amount to RSD 142.7 billion dinars.

Milivoje Mihajlovic and Dusan Nikezic

State Secretary at the Ministry of Finance Dusan Nikezic said at a press conference held after the government session that under the revised budget, revenues will amount to RSD 707.34 billion, while expenditures will stand at RSD 850.91 billion.

Under the arrangement with the IMF, the consolidated budget deficit this year will be increased from the originally planned 4.1% of GDP to 4.5% of GDP, he said.

Nikezic explained that expenditures for pensions, salaries and social benefits will be increased as of October.

Budget revision for 2011 will provide an additional RSD 300 million to subsidise housing loans, he said.

Nikezic stressed that incentives for creating new jobs and for agriculture will remain unchanged, adding that major infrastructure projects will not be delayed.

The biggest savings will be made with capital expenditures, Nikezic said and recalled that the adoption of this law is a prerequisite for the arrangement with the IMF and a sign that the Serbian government has a responsible economic policy.

The revised budget for 2011 should provide greater economic activity and employment in the country, concluded Nikezic.

Director of the Office of Media Relations Milivoje Mihajlovic announced that the government adopted the Bill on property rights in air traffic, extending the responsibility of airlines.

He explained that this is a new act, harmonised with the EU, given that the law currently in force is from 1998.

Mihajlovic said that at its meeting today the cabinet decided on the establishment of the Agency for the Management of Ports and allowed the participation of the Serbian Interior Ministry in the UN’s multinational operation in Cyprus.