Memorandum on the Budget for 2008 adopted

Minister of Finance Mirko Cvetkovic said that the government today decided to freeze the salary fund for budget users next year at November 2007 level.

The Memorandum on the Budget and Economic and Fiscal Policy for 2008 with projections for 2009 and 2010, that was adopted today, envisions reduction of expenditures for goods and services by 10%, for subsidies 5% and for public investments by 20% compared with this year, according to Cvetkovic.

Projected inflation should be reduced from this year’s 6.5% to 6% in 2008, 5% in 2009 and 4% in 2010, Cvetkovic explained. Cvetkovic noted that the share of public expenditure in GDP should be reduced by 1.7% in 2008, i.e. from 41.4% to 39.7%, and by 0.5% in 2009.