National Assembly of the Republic of Serbia / Activities / Activity details
Wednesday, 9 December 2015
76th Sitting of the Committee on Finance, State Budget and Control of Public Spending
At the sitting held on 9 December, the members of the Committee on Finance, State Budget and Control of Public Spending discussed several bills and decision proposals on the agenda for the Eighth Sitting of the Second Regular Session of the National Assembly of the Republic of Serbia in 2015.
By majority vote, pursuant to Article 76 of the National Assembly Rules of Procedure, the Committee members decided to complete a joint debate in principle and single debate on items 1 through 9 on the agenda for the sitting.
Minister of Finance Dusan Vujovic provided the rationale on the bills and decision proposals, stressing that the Bill amending and modifying the Budget System Law enables the exclusion of pay and pension rises from the limitations set in the Law last year. It also allows for the use of the current budget reserve of minus 2.5%, which is enough to eliminate the mistakes in the planning.
The Minister also provided the rationale for the Republic of Serbia 2016 Budget Bill, with its accompanying Proposal of the Decision granting consent to the Republic Pension and Disability Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the Republic Health Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the National Employment Service 2016 Financial Plan and the Proposal of the Decision granting consent to the Fund for Social Insurance of Military Insured 2016 Financial Plan, with a special focus on the emerging dilemmas among the public about the structure of the budget proposed for 2016. He opined that next year’s challenge will be to maintain the reduced deficit achieved this year and the trend of economic growth from minus to plus in the coming years.
The Bill amending and modifying the Excise Tax Law envisages a rise in excise tax on oil derivatives – petrol, diesel fuel and liquefied petroleum gas, with the objective of reducing import and promoting the use of renewable energy sources, and a rise in excise tax on alcohol.
The Bill amending the Law on Determining Public Interest and Special Procedures of Expropriation and Issuance of Building Permit for the Realisation of Project “Belgrade Waterfront” transfers part of the authority onto the City of Belgrade so as to avoid any delays in the realisation of the project, said Minister Vujovic, while the Bill on the Confirmation of the Guarantee Agreement (EPS Restructuring Project) between the Republic of Serbia and the European Bank for Rehabilitation and Development enables a 200 million EUR loan for the structural reforms in EPS.
Minister Vujovic briefly presented the Proposal of the Decision granting consent to the Decision modifying g the Republic Health Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the Republic Pension and Disability Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the National Employment Service 2015 Financial Plan and the Proposal of the Decision granting consent to the Decision amending and modifying the Fund for Social Insurance of Military Insured 2015 Financial Plan which are accompanying decisions to the Republic of Serbia 2016 Budget Bill.
Pavle Petrovic, President of the Fiscal Council, outlined the assessment of the Republic of Serbia 2016 Budget Bill the institution he heads had submitted to the Committee commending the structural, that is lasting, decrease of the deficit in 2015 by 2.4 percentage points. He also had some qualms about the way certain positions were presented in the Bill.
In the ensuing debate the participants discussed the budget income and expenditures, deficit reduction, use of IPARD funds, employment restrictions, salary funds, effects of the rationalisation of the number of public sector employees, expected effects of the excise tax increase, total subsidy reduction, Tax Administration and its reorganisation, voiced criticism of the State Audit Institution, following the recommendations of the State Audit Institution, capital expenses, etc.
After the debate, by majority vote, the Committee members accepted the Bill amending and modifying the Budget System Law, Republic of Serbia 2016 Budget Bill, with its accompanying Proposal of the Decision granting consent to the Republic Pension and Disability Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the Republic Health Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the National Employment Service 2016 Financial Plan and the Proposal of the Decision granting consent to the Fund for Social Insurance of Military Insured 2016 Financial Plan, Bill amending and modifying the Excise Tax Law and the Bill amending the Law on Determining Public Interest and Special Procedures of Expropriation and Issuance of Building Permit for the Realisation of Project “Belgrade Waterfront”, in principle.
The Committee members also accepted, by majority vote, the Bill on the Confirmation of the Guarantee Agreement (EPS Restructuring Project) between the Republic of Serbia and the European Bank for Rehabilitation and Development, Proposal of the Decision granting consent to the Decision modifying g the Republic Health Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the Republic Pension and Disability Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the National Employment Service 2015 Financial Plan and the Proposal of the Decision granting consent to the Decision amending and modifying the Fund for Social Insurance of Military Insured 2015 Financial Plan.
The Committee then proceeded to review the request of the employees of the Public Procurement Office for prior written consent to perform additional paid activity and, by majority vote, decided to grant it.
For the first time, the sitting was attended by the employees of the Budget Office adjoined to the Committee on Finance, State Budget and Control of Public Spending.
The sitting was chaired by Committee Chairman Veroljub Arsic, and attended by Committee members Olivera Pesic, Milorad Mijatovic, Dragoljub Zindovic, Ivan Jovanovic, Radmilo Kostic, Zoltan Pek, Suzana Sarac, Zoran Bojanic, Vojislav Vujic, Dusica Nikolic, Milos Tosanic and Goran Kovacevic.
Minister of Finance Dusan Vujovic provided the rationale on the bills and decision proposals, stressing that the Bill amending and modifying the Budget System Law enables the exclusion of pay and pension rises from the limitations set in the Law last year. It also allows for the use of the current budget reserve of minus 2.5%, which is enough to eliminate the mistakes in the planning.
The Minister also provided the rationale for the Republic of Serbia 2016 Budget Bill, with its accompanying Proposal of the Decision granting consent to the Republic Pension and Disability Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the Republic Health Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the National Employment Service 2016 Financial Plan and the Proposal of the Decision granting consent to the Fund for Social Insurance of Military Insured 2016 Financial Plan, with a special focus on the emerging dilemmas among the public about the structure of the budget proposed for 2016. He opined that next year’s challenge will be to maintain the reduced deficit achieved this year and the trend of economic growth from minus to plus in the coming years.
The Bill amending and modifying the Excise Tax Law envisages a rise in excise tax on oil derivatives – petrol, diesel fuel and liquefied petroleum gas, with the objective of reducing import and promoting the use of renewable energy sources, and a rise in excise tax on alcohol.
The Bill amending the Law on Determining Public Interest and Special Procedures of Expropriation and Issuance of Building Permit for the Realisation of Project “Belgrade Waterfront” transfers part of the authority onto the City of Belgrade so as to avoid any delays in the realisation of the project, said Minister Vujovic, while the Bill on the Confirmation of the Guarantee Agreement (EPS Restructuring Project) between the Republic of Serbia and the European Bank for Rehabilitation and Development enables a 200 million EUR loan for the structural reforms in EPS.
Minister Vujovic briefly presented the Proposal of the Decision granting consent to the Decision modifying g the Republic Health Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the Republic Pension and Disability Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the National Employment Service 2015 Financial Plan and the Proposal of the Decision granting consent to the Decision amending and modifying the Fund for Social Insurance of Military Insured 2015 Financial Plan which are accompanying decisions to the Republic of Serbia 2016 Budget Bill.
Pavle Petrovic, President of the Fiscal Council, outlined the assessment of the Republic of Serbia 2016 Budget Bill the institution he heads had submitted to the Committee commending the structural, that is lasting, decrease of the deficit in 2015 by 2.4 percentage points. He also had some qualms about the way certain positions were presented in the Bill.
In the ensuing debate the participants discussed the budget income and expenditures, deficit reduction, use of IPARD funds, employment restrictions, salary funds, effects of the rationalisation of the number of public sector employees, expected effects of the excise tax increase, total subsidy reduction, Tax Administration and its reorganisation, voiced criticism of the State Audit Institution, following the recommendations of the State Audit Institution, capital expenses, etc.
After the debate, by majority vote, the Committee members accepted the Bill amending and modifying the Budget System Law, Republic of Serbia 2016 Budget Bill, with its accompanying Proposal of the Decision granting consent to the Republic Pension and Disability Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the Republic Health Insurance Fund 2016 Financial Plan, Proposal of the Decision granting consent to the National Employment Service 2016 Financial Plan and the Proposal of the Decision granting consent to the Fund for Social Insurance of Military Insured 2016 Financial Plan, Bill amending and modifying the Excise Tax Law and the Bill amending the Law on Determining Public Interest and Special Procedures of Expropriation and Issuance of Building Permit for the Realisation of Project “Belgrade Waterfront”, in principle.
The Committee members also accepted, by majority vote, the Bill on the Confirmation of the Guarantee Agreement (EPS Restructuring Project) between the Republic of Serbia and the European Bank for Rehabilitation and Development, Proposal of the Decision granting consent to the Decision modifying g the Republic Health Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the Republic Pension and Disability Insurance Fund 2015 Financial Plan, Proposal of the Decision granting consent to the Decision modifying the National Employment Service 2015 Financial Plan and the Proposal of the Decision granting consent to the Decision amending and modifying the Fund for Social Insurance of Military Insured 2015 Financial Plan.
The Committee then proceeded to review the request of the employees of the Public Procurement Office for prior written consent to perform additional paid activity and, by majority vote, decided to grant it.
For the first time, the sitting was attended by the employees of the Budget Office adjoined to the Committee on Finance, State Budget and Control of Public Spending.
The sitting was chaired by Committee Chairman Veroljub Arsic, and attended by Committee members Olivera Pesic, Milorad Mijatovic, Dragoljub Zindovic, Ivan Jovanovic, Radmilo Kostic, Zoltan Pek, Suzana Sarac, Zoran Bojanic, Vojislav Vujic, Dusica Nikolic, Milos Tosanic and Goran Kovacevic.