http://www.mfin.sr.gov.yu Ministry of Finance, Republic of Serbia RSS feed 07.09.2008. Copyright 2008, Ministarstvo finansija Republike Srbije http://www.mfin.sr.gov.yu/images/mfin-logo.gif http://www.mfin.sr.gov.yu 133 100 http://www.mfin.sr.gov.yu/news-eng/1391/ Sun, 07 Sep 2008 08:18:07 +0200 As of July 2008, the Ministry of Finance has been reporting on execution of budget revenues and expenses in line with standard and internationally comparable methodology created by the International Monetary Fund (Government Finance Statistics – GFS, 1986). The main difference between the previous and the new methodology is that the former methodology overestimated budget revenues (by including the license for mobile telephony) and underestimated expenses (by failing to include loans and repayment of debt to pensioners). Therefore, the planned RSD14.8 billion budget deficit for this year (according to the former methodology) grew to RSD44.9 billion with application of the standard international methodology. Simultaneously, for reasons of comparability, the Ministry of Finance has continued to report by following the former methodology, in line with which the 2008 Budget Law was adopted. According to the former methodology, the budget of the Republic of Serbia created RSD3.9 billion surplus in the first eight months of 2008, while the standard international methodology (GFS 1986) indicates that the budget posted RSD17.4 deficit. www.mfin.sr.gov.yu/1391 http://www.mfin.sr.gov.yu/news-eng/1390/ Sun, 07 Sep 2008 08:18:07 +0200 The State Secretary at the Ministry of Finance Janko Guzijan announced that a revised budget will be presented to the government in September and discussed and adopted in the Serbian Parliament by mid-October. In preparing the revision, the objective of the Ministry of Finance will be to curb public expenditure and budget deficit, that is, to provide funds for additional expenses by reallocation. The State Secretary Janko Guzijan also highlighted that the Ministry of Finance expects the budget revenues to increase by up to RSD20 billion, as a result of stronger economic growth, but also due to inflation, which will be higher than originally planned. In the first seven months of the year, revenues in state coffers were 18 percent higher relative to the same period last year. www.mfin.sr.gov.yu/1390 http://www.mfin.sr.gov.yu/news-eng/1389/ Sun, 07 Sep 2008 08:18:07 +0200 State Secretary Janko Guzijan’s interview to the national broadcaster RTS, 28 August 2008 After some three weeks of consultations, the government will consider the proposal by the Ministry of Labor and Social Policy regarding extraordinary pension increase in October 2008. The last proposal agreed with the Ministry of Finance, which adopted a positive opinion on the proposal of the Ministry of Labor and Social Policy, suggests that on top of the regular adjustment of pensions in October, pensions should be increased extraordinarily by further 10 percent. www.mfin.sr.gov.yu/1389 http://www.mfin.sr.gov.yu/news-eng/1387/ Sun, 07 Sep 2008 08:18:07 +0200 Janko Guzijan, State Secretary at the Ministry of Finance, announced extraordinary ten-percent pension hike. “The Ministry of Finance will support the proposal made by the Ministry of Labor and Social Policy, provided that funds are created by revision of the budget for this year. Additional funds for pension-related expenses will be provided from supplementary revenues in the budget and savings on other budget positions, which will be defined by budget revision. The estimates are that some RSD8 billion need to be allocated for the extraordinary adjustment of pensions”, Guzijan said. www.mfin.sr.gov.yu/1387 http://www.mfin.sr.gov.yu/news-eng/1386/ Sun, 07 Sep 2008 08:18:07 +0200 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. www.mfin.sr.gov.yu/1386 http://www.mfin.sr.gov.yu/news-eng/1385/ Sun, 07 Sep 2008 08:18:07 +0200 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. www.mfin.sr.gov.yu/1385 http://www.mfin.sr.gov.yu/news-eng/1384/ Sun, 07 Sep 2008 08:18:07 +0200 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. www.mfin.sr.gov.yu/1384 http://www.mfin.sr.gov.yu/news-eng/1383/ Sun, 07 Sep 2008 08:18:07 +0200 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 www.mfin.sr.gov.yu/1383 http://www.mfin.sr.gov.yu/news-eng/1382/ Sun, 07 Sep 2008 08:18:07 +0200 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. www.mfin.sr.gov.yu/1382 http://www.mfin.sr.gov.yu/news-eng/1380/ Sun, 07 Sep 2008 08:18:07 +0200 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. www.mfin.sr.gov.yu/1380