Government passes Decree on interim financing to secure continuity in financing

Coordinator of the Serbian Ministry of Finance Milan Parivodic said the government passed today the Decree on interim financing of the Republic of Serbia for January-June 2007 period in order to continue harmonious functioning of the administration. The Parliament did not adopt the 2007 budget bill that was sent to government in November 2006, Parivodic told at press conference. Therefore, the government had to pass the Decree on interim financing for the January-March period, which expires on March 31.

In order to secure continuous financing from the state budget, the government adopted the Decree on interim financing of the Republic of Serbia for January-June 2007 period after getting a positive opinion from the Secretariat for the Judiciary. According to Parivodic, the decree stipulates total funds in the amount of RSD 260.6 billion, expenditures of RSD 239.7 billion and surplus of RSD 20.9 billion.

The funds planned for this period are equal to half of the funds from the 2006 budget revision, Parivodic explained. He noted that the budget surplus will be used to repay public debt in the amount of RSD 18.8 billion and procurement of domestic financial property in the amount of nearly RSD 2 billion.

The Funds for the realisation of the National Investment Plan total RSD 24.4 billion and will be financed from the undistributed surplus from previous years, Minister added. According to Parivodic, the transfer funds for the Autonomous Province of Vojvodina stand at RSD 9.2 billion, out of which sum RSD 8.9 billion will be used to cover expenses for employees in the education sector.

Parivodic specified that the base for determining salaries of public servants for April 2007 will be RSD 14,242 net.
According to Parivodic, as much as RSD 13 billion was saved up in the previous three months and in relation to the proposed budget before end-2006, the savings should stand at approximately RSD 31 billion.

Minister Parivodic appealed that all constitutive organs of the parliament be established as soon as possible so that the Law on the budget may be amended.