Minister of Finance Sinisa Mali said that the Republic of Serbia 2022 Budget Bill aims to achieve two goals: further raise the living standards of citizens by raising salaries, pensions, minimum wage and by disburdening income, and further strengthen the economy through capital investments.

The Minister of Finance said that next year’s budget envisages a total of 1.516 billion RSD in revenues and 1.717 billion RSD in expenditures. The deficit has been reduced to 202 billion RSD, or 3%, said Mali pointing out that the reduction in the deficit, in agreement with the International Monetary Fund, enables the share of public debt in GDP to be reduced from the expected 58.2% this year to 55.5% by the end of next year. He also pointed out that the projected economic growth rate is 4.5%, which is a conservative forecast, and expressed the expectation that the growth rate would be even higher.

Public finances are stable, the state treasury is liquid, obligations are being met on time, all in cooperation with the National Bank of Serbia, Minister Sinisa Mali concluded.

The Committee members were also addressed by the Governor of the National Bank of Serbia Dr Jorgovanka Tabakovic who said that the proposed budget for 2022 is based on realistic macroeconomic assumptions and projections. She said that a balance has been struck between the development and social components of the budget. The fiscal plan for next year contributes to economic growth, increased investment and competitiveness, employment growth and living standards, concluded Tabakovic.

President of the Fiscal Council Prof. Dr Pavle Petrovic, President of the Council for Coordination of GDP Growth Activities and Measures Dr Miladin Kovacevic and President of the Council of the State Audit Institution Dr Dusko Pejovic also shared their opinions on the Republic of Serbia 2022 Budget Bill.

Following a lengthy discussion the Committee accepted the Republic of Serbia 2022 Budget Bill, with accompanying decision proposals, as well as the Bill on the Republic of Serbia 2020 Budget Final Financial Statement, in principle.

The Committee members also considered and accepted, in principle, the Bill amending and modifying the Budget System Law, Bill amending the Corporate Income Tax Law, Bill amending and modifying the Personal Income Tax Law, Bill amending the Law on Taxes on Use, Possession and Carrying of Goods,
Bill amending and modifying the Property Taxes Law, Bill amending and modifying the Law on Compulsory Social Insurance Contributions, Bill on Budget Inspection, Bill amending and modifying the Law on Expropriation, Bill amending and modifying the Customs Law, Bill on the regulation of obligations of the Republic of Serbia toward the International Monetary Fund on the basis of the use of funds of general allocation of special drawing rights, approved by the decision of the International Monetary Fund Board of Governors of 2 August 2021, and the Bill on the Confirmation of the Loan Agreement between KfW, Frankfurt am Main ("KfW") and the Republic of Serbia represented by the Minister of Finance ("Borrower") for the Programme - Integrated Solid Waste Management Phase I, submitted by the Government.

The bills were presented by the state secretaries in the Ministry of Finance, Sasa Stevanovic and Slavica Savicic, Assistant Minister of Finance Snezana Karanovic, and the representative of the Public Debt Administration Dragan Babic.

The sitting was chaired by Committee Chairperson Dr Aleksandra Tomic and attended by the following Committee members and deputy members: Veroljub Arsic, Zoran Bojanic, Nikola Jolovic, Adrijana Pupovac, Olivera Pesic, Ana Beloica, Goran Kovacevic, Dr Boban Birmancevic, Bratimir Vasiljevic, Prof. Dr Vladimir Marinkovic, Ugljesa Markovic, Zoltan Pek and Vojislav Vujic, As well as MPs Prof. Dr Ljubinko Rakonjac, Milos Terzic and Milija Miletic.