Serbian parliament adopts Law on budget for 2007

Serbian parliament adopted last night the Law on budget for 2007 which envisages RSD 581.8 billion in revenues, RSD 595.5 billion in expenditures and a budgetary deficit of RSD 13.7 billion. The Law will come into force on July 1 and it will terminate the interim financing of budgetary users.

Funds for realisation of the National Investment Plan will be RSD 44.4 billion, which is four times more than last year. Expenditures for employees are planned in the amount of RSD 152.8 billion, of which RSD 144.6 is intended for salaries of budgetary users which will be higher by 22% on average.

The Ministry of Defence will get RSD 63.5 billion and the Ministry of Interior more than RSD 45.5 billion. The Ministry of Foreign Affairs will get RSD 5.5 billion, of which RSD 3.7 billion will be set aside for diplomatic and consular offices abroad. Some RSD 26 billion is earmarked for the Ministry of Agriculture, Forestry and Water Management, that is, for the agricultural budget. The Ministry of Health will get RSD 15.6 billion and the Ministry of Education RSD 58.4 billion.

Transfers to the organisations of obligatory social insurance are planned in the amount of RSD 147.4 billion. The Fund for pension and disability insurance will get RSD 95 billion, and the Institute for health insurance RSD 3 billion. Subsidies to the organisations of obligatory social insurance make up for 22.8% of the budget and are larger in relation to the last year’s budget by approximately RSD 7 billion.

Social care will be financed from the budget with RSD 61.6 billion, and the largest amount, RSD 21.3 billion will be used for child care. Funds for the repayment of public debt (principal and interest) are planned in the amount of RSD 58.6 billion.

A total of RSD 3.6 billion is planned for the work of Serbian parliament, and the costs of the President of the republic and his services will be RSD 170.3 million. Tax payers will set aside approximately RSD 5.5 billion for the needs of the government. Costs of judiciary organs are planned in the amount of RSD 21 billion, while the War Crimes Prosecutor’s Office will get RSD 72 million. RSD 25 million is planned for new institutions introduced by the Constitution, such as the ombudsman, and approximately RSD 10 million for the state auditing institution.

RSD 35.5 billion is earmarked for subsidies in the economy, agriculture, railway, tourism and culture, of which RSD 14.6 billion for agricultural subsidies, RSD 10.6 billion for the railway and RSD 3.2 billion for the economy. Transfers to other levels of government – the Autonomous Province of Vojvodina and local self-government are RSD 56 billion.

Continuation of the session at which parliament members should examine amendments to tax laws is scheduled for June 26 at 10 am.