Funds for local self-governments total 15.4 billion dinars

Serbian Minister of Finance Mladjan Dinkic said today that funds from the 2006 budget of Serbia that are directed to the budget of municipalities, cities and the city of Belgrade total 15.4 billion dinars.

Speaking on the Bill on the distribution of transfer funds in the Serbian parliament, he said that funds for Belgrade and the rest of the cities will be increased by four percent, and for the rest of the municipalities by 20 percent in comparison with this year, he added that municipalities, cities and the city of Belgrade will participate in the 40 percent tax on profits realised on their respective territories.

Dinkic said that the total revenues of local self-governments for the upcoming year are planned to come in at 112.6 billion dinars, which is a12 percent increase compared with this year.

He said that the largest contribution to the revenues will be made through the income tax, at 36.7 billion dinars, revenues from property tax will be 17 billion dinars, while transfer funds will be 14 percent of the total revenues of local self-governments.

Dinkic said that local self-governments in the upcoming year can count on a maximum of nine percent increase in pay, and added that this law is directed towards using more of the municipality funds for investment, and less for administration.

Dinkic said that impoverished municipalities are being given 20 percent more funds, but the Serbian government demands that expenses be cut across the board.