Nenad Mijailovic, State Secretary at the Ministry of Finance, spoke about the structure of the Republic of Serbia 2016 Budget Bill, Section 27 - Ministry of Agriculture and Environmental Protection, stressing that next year’s budget is conservative, based on realistic assessments and without unrealistic expectations for next year’s tax payments. The budget deficit of 121.8 billion RSD is in line with the programme agreed with the IMF. The 2017 deficit is planned to be below 3%, and planned growth above 3%. The 2016 expenses are planned in line with last year’s profit. 14 billion RSD goes to salaries, out of which 10 billion go to the Ministry of Public Administration and Local Self-Government and 4 billion to the Ministry of Health, intended for severance packages in the rationalisation process. Merchandise and service expenses are the same as last year, with savings achieved on business trips. Subsidies are nominally raised compared to last year, while capital expenses are lower – 42 billion RSD, caused by bad execution, concluded Mijailovic. Section 27 - Ministry of Agriculture and Environmental Protection is to receive 40.6 billion RSD, 43.5 billion of which is allocated to agriculture. More than 24 billion RSD is planned to go to function 451 – subsidies and agrarian payments, which is 700 million RSD more than in 2015, stressed Mijailovic.

Dragoje Pavlovic, Assistant Minister of Agriculture and Environmental Protection, said that this was a program budget where all the stimulus packages and subsidies will be grouped in one place – the Directorate for Agrarian Payments. As much as 87% of the agricultural budget is expenditure, 70% of which are intended for subsidies.

The ensuing discussion, in which the Minister of Agriculture and Environmental Protection Snezana Bogosavljevic Boskovic took active part, focused on the need to reserve budgetary funds for emergency responses, funds for the payment of the remaining 2015 debt to agricultural producers not covered by the public debt, levies, new mechanisms to earn profit in agriculture, and complaints to the funds allocated for agriculture.

Following the debate, the Committee members accepted the Republic of Serbia 2016 Budget Bill, Section 23 - Ministry of Agriculture and Environmental Protection, by majority vote.

By majority vote, the Committee also adopted a Conclusion thanking the Government of the Republic of Serbia for the additional 9.5 billion in stimulation for 2015, which enables the payment of all the stimulation packages and debts to the agricultural households. The Committee finds encouraging the additional billion in the part for stimulation packages for 2016, but recommends that the funds be raised, and especially to secure funds for an emergency buy-out of meat and milk which would maintain the stability of prices, production, market, export and supply.

The Committee members then went on to discuss the Bill amending and modifying the Law on Stimulation of Agriculture and Rural Development, in principle.

Presenting the Bill, Mladen Mladenovic, Assistant Minister of Agriculture and Environmental Protection, said that it stems directly from the 2015 Budget Bill and the transformation of the stimulation debts into public debt. The Bill secures financial stability and equal allocation of funds and stimulation packages for agriculture and other stimulation measures for agrarian development.

Following the debate, the Committee members accepted the Bill amending and modifying the Law on Stimulation of Agriculture and Rural Development, in principle.

The sitting was attended by Committee members Milan Latkovic, Miroljub Stankovic, Velimir Stanojevic, Miroslav Marinkovic, Arpad Fremond, Vladan Milosevic, Dejan Nektarijevic, Milan Kovacevic, Miodrag Nikolic, Zarko Bogatinovic and Milija Miletic.

The sitting was chaired by Committee Chairman Marijan Risticevic.