Serbian Parliament adopts a series of finance related legal regulations

The Parliament of the Republic of Serbia adopted today the amendments on the Law on Budgetary System, the Law on the participation of cities and communes in the sales taxes and revenues taxes redistribution, as well as a series of laws related to the Republic 2000. and 2001. Budget closing balance.
The amendments on the Law on Budgetary System provides for the creation of a Public Payments Administration. Mr. Bozidar Djelic, minister of finance of the Republic of Serbia, declared, explaining the suggested modifications to the legislation, that this Administration will created from the former Public Revenue and Payment Agency (ZOP), which won’t exist no longer after the migration towards the new business banks based financial flow system, starting on January 1st 2003.

The Public payment Administration will be in charge of keeping the record and the managing the activities related to the consolidated treasury account for direct and indirect beneficiaries of budgetary and local administration funds, as well as the organizations of obligatory social security, according to the Beta news agency.
Mr. Djelic also declared that by the takeover of the ZOP real estate and equipment property, the Public payment Administration will reintegrate some 800 to 850 ZOP employees, while other employees will be appointed in diverse tax administration bodies, the central file registry, and other institutions after the ZOP transformation.
Mr. Djelic declared that this law represents only the first step of the public finances reform, because it will be followed by numerous legislative regulations, the Law on the National Bank of Serbia, as well as the Law on the Public debt.
According to the minister’s terms, the Law provides for the existence of the consolidated treasury account, as well as for the identity of the beneficiaries of public funds and the conditions of these benefits attribution. “The local administration as well as the Province authority will have their own accounts, but with the Republic consolidated treasury account – and later the account of the State community – a system of consolidated treasury accounts will be established to provide, at any time, an efficient management of the funds.”, said Mr. Djelic.
The amendments on the Law on Budgetary System will provide Serbia the capacity of financing the budgetary deficit through the valuable papers issuing, as well as an additional transparency both on the Revenue and Liabilities sides of the public finance balance.
The Parliament of the Republic of Serbia also adopted the Law on the participation of cities and communes in the sales taxes and revenues taxes redistribution for the year 2003, which provides for a 11.3 billion dinars concession to the local authorities.
A total amount of 67.3 billion dinars is planned for the local authorities financing during the year 2003, among which 28.1 come from source revenues, 27.9 billion from the unlimited concessions to the local authorities, and 11.3 billion from concessions under special conditions.

Belgrade will dispose the largest amount of funds – approximately 3.1 billion dinars – and this is the first time that a Law provides for fund allocation to the ecologically endangered environments – such as Pancevo and Bor.

The Law proposal also provides with the payment of the funds from the collection of the sales taxes within the Kosovo and Metohija province directly to the consolidated treasury account of the Republic of Serbia, the Government defining the amounts for communes and cities of the province – only upon the suggestions of the Coordination Centre.