News

28.08.2008.

RSD8 billion from Budget Revision for Extraordinary Pension Increase

More 4.08.2008.

Diana Dragutinović: “From the budget firstly for the neediest”

If September pensions were to see extraordinary increase of 10 percents, and seven percents in October based on regular indexation policy, the total pensions’ nominal growth in this year would reach round 40 percents, while their real growth, aligned with this year’s inflation of some 12 percents, would be 28 percents. In no country is possible, that with production growth levels of 7-8 percents, incomes of 1.6 million population, in this case the pensioners, have real growth of 28 percents without that causing significant inflator pressures, said for Politika daily Minister of Finance Diana Dragutinović, PhD.
The Minister is in favor of differentiated pensions’ increase which would reduce the gap between minimal and maximal pensions, i.e. pro increase of the minimal pensions only. However, she is against Regulation that would, according to the Prime Minister’s announcements, secure extraordinary pensions’ increase as of September because the Law regulating pensions issue is in force.

More 1.08.2008.

The Government is still not selling Dunav insurance company

The Ministry of Finance State Secretary Slobodan Ilic commenting unofficial announcements on Polish biggest insurance company PZU intention to purchase Dunav insurance company, the only state-owned insurance company in Serbia, and Slovenian Triglav insurance, and intention to pay for it 4.9 billion Dollars (3.2 billion Euro), Ilic says that offer is still not an official one.
“Neither has the Government or the Ministry of Finance, nor the Deposit Insurance Agency received any announcement of such interest, but the news circulated in the media are the only information we have”, Ilic is pointing out.
“The experience is teaching us that in estimating interests expressed in the media, we should be more than cautious having in mind that in the past potential candidates in the privatization process have went publicly with certain numbers for which they “allegedly” were willing to pay, and that real life failed showing that, witch led us to the conclusion that we were facing the attempt to “create appropriate ambient and general public atmosphere” aimed at grasping the best start-up position in the bid and elimination of potential competition”, said Slobodan Ilic, State Secretary at the Ministry of Finance.

More 30.07.2008.

Diana Dragutinovic: "Padlock on the Budget"

Minister of Finance Diana Dragutinović in the interview for the Ekonomist magazine says that after this year’s deficit estimated to exceed 700-800 million Euros, Serbia in the next year has a great chance to balance the budget, even to have it in the mild surplus.
For the Ekonomist magazine, Minister states that at no cost she is to allow for expansive fiscal policy to jeopardize macroeconomic stability. Diana Dragutinović says that she will insist on saving measures on all levels, and that implies that in the next year public sector wages will grow slower against gross domestic product (GDP).
The Minister of Finance has also announced that she will stand in favour of capital gain and real, i.e. absolute rights tax ablation, and that in the course of two years capital transactions will be completely liberalized.

More 25.07.2008.

Serbia is not having additional costs on World Bank and EIB’s approved credits

Assistant Minister of Finance Zoran Ćirović said that Serbia is not having additional costs in reference to the approved funds from the loans, credits and donations from the World Bank and European Investment Bank, regardless of the fact that those agreements have been signed year ago and still have not been ratified by the Serbian Parliament.
In statement given to the Tanjug news agency, Ćirović pointed that 11 international financial agreements are on extraordinary Parliament session’s agenda, and when adopted, necessary conditions for loans, credits and donation’s usage, worth 286.22 million Euros and approved by the WB and EIB, will be established

More 16.07.2008.

Janko Guzijan: Fulfillment of the Promises in a Few Years Time

Janko Guzijan, State Secretary, Ministry of Finance, in the interview for EU Market magazine says that if by judging from numerous moves that the National Bank of Serbia has made in the last year or two, it is clear that we will face extremely restrictive monetary policy in the future, as well. However, the direction of our fiscal policy is not completely clear yet. Announcements given to citizens in the election campaign indicate that there will definitely be some changes in this area.
According to Janko Guzijan, State Secretary in the Ministry of Finance, objectives of the fiscal policy were recently defined by adopting the Memorandum on the Budget and Economic and Fiscal Policy.
The Memorandum envisages that over next three years the budget should transit from deficit into surplus, while the inflation should be reduced and foreign trade gap narrowed – Guzijan told “EU Market”. – Our intention is that in the planned period of three-four years, keep tax rates at the current level. Tax laws shall be changed, of course, but in order to reduce administration and bureaucracy, establish fairness of taxation and improve control.

More 15.07.2008.

State Securities for Budget Financing Purposes as of September

The Minister of Finances Diana Dragutinović said that as of September this year, the state will initiate long term securities’ issuance for budget financing purposes, totaling approximately five billion Dinars.
The Minister explained that state securities will be indexed in Dinars exclusively and that they can be purchased by both natural and legal persons, and that their role will be in taking over excessive Dinar liquidity and in stimulation of home capital market developments.
Speaking of inflation and inflation-related curbing measures, she pointed out that the biggest influence on Serbia’s inflation have permanent global oil and food prices increases, and announced prospect of oil derivates’ excises reduction aimed at inflator shocks absorptions.

More 12.07.2008.

The goal of the Ministry of Finance is to reduce public spending share in GDP

The Minister of Finance Diana Dragutinović said that the most important goal of this Ministry is reduction of public spending share in gross domestic product (GDP).
During last couple of years, public spending share in GPD has increased for 3.6 percentage points, from 40.4 to 44 percents. This year will see similar thing, i.e. somewhere less is we don’t have budget rebalance. The key issue is to have relative decline in public spending share in the next year. For me the starting point is Memorandum on budget policy, which has been adopted.
The budget rebalance will most likely be adopted by the end September. Expenditures can be increased if collection is to be increased, but again, public spending should not exceed 43 percent of gross domestic product. That way we would join group of countries with medium-high public spending levels. Let me remind that there are countries where public spending is between 35 and 39 percent of GDP, then countries with 40-44 percent public spending share of GDP, among which is Serbia, and the third category, mainly composed out of underdeveloped countries, have public spending share higher than 44 percent. Of course, I would be very happy if I could lead Serbia into the first group.

More 12.06.2008.

Report on Budget Execution Presented, 12 June 2008

At today's meeting of the Government, the Minister of Finance Mirko Cvetkovic presented the Brief on Budget Execution in January-May 2008, with forecast until the end of the year. The complete Brief download here.

12.06.2008.

Cvetkovic: Decreased International Assistance Means Reforms in Serbia Have Progressed

Serbian Minister of Finance Mirko Cvetkovic said today that international assistance to Serbia was around EUR370mn last year, which was EUR130mn less than the year before.

"Decreased international assistance means that reforms are progressing and that Serbia is increasingly relying on its own forces in economic development and institutional reform”, he told a donor meeting at which Annual Plan on International Assistance to Serbia was presented.

More 10.06.2008.

Ministry of Finance Prepared a Report on Budget Execution in the Past Five Months

Serbian Minister of Finance Mirko Cvetkovic said today that the Government has managed the budget rationally this year, because the deficit in the first five months reached only one billion dinars, as opposed to planned RSD14.8 billion.

Cvetkovic told Tanjug news agency that the Ministry of Finance prepared for the next meeting of the government a report on budget execution in the first five months of the year, which will absolutely prove that the budget was managed rationally.

More 29.05.2008.

No cuts in oil derivatives excise

The Ministry of Finance has approved the proposal of the Ministry of Mining and Energy to increase fuel prices by 12.48% on the average. An analysis of the impact that lower excise on oil derivatives would have on the republic budget and inflation, conducted by the Ministry of Finance, showed it would be impossible to reduce excise duties at this moment, because it would affect adversely budget revenues, while contributing just slightly to containing inflation.

More 23.05.2008.

Decision on fuel prices increase postponed for the next week

More 20.05.2008.

EU Approximation Important for Solving Social Problems

More 15.05.2008.

Memorandum on the Budget and Economic and Fiscal Policy for 2009 Adopted

At today’s meeting, the Government adopted the Memorandum on the Budget and Economic and Fiscal Policy for the following year, with projections for 2010 and 2011, which strategically delineates directions for development of Serbia.  The Memorandum defines macroeconomic stability, low inflation, maintaining dinar exchange rate, further acceleration of economic growth and the biggest investment cycle in Serbian history.

More

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