Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

Budget revision affirms government’s social responsibility

Belgrade, 21 September 2011

Prime Minister Mirko Cvetkovic said that the government is closely monitoring global economy, especially everything that is currently happening in the region and countries with which Serbia has established more intensive economic cooperation.

Author: Tanjug

In an interview for today’s issue of Vecernje Novosti daily, Cvetkovic stressed that in case the negative effects of global events threaten the macroeconomic stability of our country all the necessary measures will be taken.

The Prime Minister said that the impact of global economic events on Serbia is inevitable, adding that it is difficult to state with certainty how much we will be struck by the current wave of global problems.

The Serbian government’s official website gives excerpts of this interview.

Why aren’t there new measures to prevent the impact of the economic crisis in the current budget revision?

Once the budget revision has been adopted, incentives for economic activities will be by RSD 2.8 billion larger than now.

An additional RSD 650 million has been secured for support to the economy, through the Development Fund, while an additional RSD 800 million has been earmarked as subsidies to private companies for the realisation of foreign direct investment. Special purpose credits for encouraging production and export will be stimulated by an additional RSD 450 million.

During the course of this year, funds earmarked for encouraging housing construction were the ones that were most spent, therefore an additional RSD 300 million will be available through the programme of subsidised housing loans, while the Transition Fund, that was founded to take care of those who are laid off, will receive an additional RSD 615 million.

The most important savings:

We will save the most on capital expenditures, but only because of slower realisation of a larger number of smaller projects. Furthermore, the costs of interest rates on loans have been reduced, but again this is so because of the lower realisation than the projected, as a net loan from the budget.

Large infrastructure projects:

Budget revision does not mean postponing or backing out of large infrastructure projects, such as the completion of Corridor 10, the construction of the Zemun–Borca Bridge, blocks of flats in former Stepa Stepanovic barracks and the ring road around Belgrade.

What does the budget revision envisage?

The budget revision affirms the government’s social responsibility because an increase of salaries and pensions by RSD 14.7 billion will be enabled and legally regulated, as well as an increase of social contributions by RSD 3.1 billion, which is in line with the new Law on social care.

Are new funds secured to increase employment?

We decided that this revision will not reduce the funds designated for active employment measures, or subsidies for agriculture.

Are there announcements by investors that they may increase investments?

In 2010 and 2011 we realised or began the realisaiton of a large number of investments in the private sector. Thus, for example, as has been planned, preparations will be completed before the year’s end to launch the production of 200,000 cars in Fiat’s new factory in Kragujevac. Such a large project will not only help to raise the technological level, export performances and Serbia’s competitiveness, but it will also be an important signal for the arrival of other large investors in the industrial, agrarian and construction sectors and telecommunications and the information society, and there already are such announcements.