2008 Budget Revision by October 5

Minister of Finance Diana Dragutinovic underscored that money in the state coffers should be redistributed, while some 55 billion dinar gap in the budget would be covered from current revenues and by reallocation of expenses. “The 55 billion dinars can be covered with real money”, Minister Dragutinovic highlighted.

The Minister specified that additional spending was required because of expenses related with establishment of a joint venture between Serbia and Italy’s Fiat, as well as due to financing of the construction of Corridor 10 and the 10 percent increase in October pensions that will be paid in November.

Minister of Finance Diana Dragutinovic underscored that money in the state coffers should be redistributed, while some 55 billion dinar gap in the budget would be covered from current revenues and by reallocation of expenses. “The 55 billion dinars can be covered with real money”, Minister Dragutinovic highlighted.

The Minister specified that additional spending was required because of expenses related with establishment of a joint venture between Serbia and Italy’s Fiat, as well as due to financing of the construction of Corridor 10 and the 10 percent increase in October pensions that will be paid in November.

Minister of Finance Diana Dragutinovic recalled that the three projects were the Government’s key priorities in 2008 and said that the Government underestimated the budget revenues for this year, because they will exceed the plan by 10 to 12 billion dinars, while any other revenues can only result from budget reallocation.

She said that the Ministry of Finance wanted to avoid redistribution, but the new Government had new priorities that required budget revision. She went on to say that the Ministries demanded additional 10 billion dinars for their expenses, while savings proposed by the Ministers amounted to some 350 million dinars, and redistribution in the state coffers will therefore be necessary.

The Minister said that there was still no consensus within the Government of Serbia whether the country needs a new arrangement with the IMF.