The Finance Committee held its eight sitting on 10 December, chaired by the Committee Chairperson, Jorgovanka Tabakovic. The Committee members discussed the Bill on the Budget of the Republic of Serbia for 2008, with its accompanying Memorandum on the Budget and Economic and Fiscal Policy for 2008, projections for 2009 and 2010 and proposals of decisions granting consent to financial plans for 2008 of the Republic Fund for Pension and Disability Insurance of Employees, National Employment Service and the Republic Health Insurance Agency. The Committee also discussed the bills on the Budgetary System, amending and modifying the Income Tax Law for citizens, amending and modifying the Income Tax Law for companies, amending and modifying the Law on Republic Administrative Fees, as well as the Proposal of the Financial Plan of the State Audit Institution for 2008.

The sitting was attended by the Minister of Finance, Mirko Cvetkovic and associates and the President of the State Audit Institution, Radoslav Sretenovic.

The Minister of Finance presented the Bill on the Budget of the Republic of Serbia for 2008, with its accompanying documents to the Committee members, pointing out that the it is both a development and social budget. The Budget Proposal returns the state into a regular budgetary calendar, and the budget itself represents a continuation of the policy demonstrated in the budget for 2007. The budgetary beneficiaries’ salary mass amounts to 176 billion dinars, which is the result of the 2007 rise. Due to an inordinate salary rise in 2007, pension rise lagged behind, so that in December 2007 pensions equaled to 50% of the average salary. The 2008 Budget includes a correction of the pensions to 60% of the average salary, which leads to a one-time pension rise of about 12% as soon as January 2008.

The Bill on the Budgetary System, according to the Minister, introduces an important innovation, namely the possibility to draft not only a one-year, but a two- or three-year budget.

The President of the State Audit Institution, Radoslav Sretenovic, presented the Proposal of the Financial Plan of the State Audit Institution for 2008 to the Committee members. Considering that the Ministry of Finance did not accept the Proposal of the Financial Plan reducing the State Audit Institution’s requested budgetary means by almost a half, the Committee requested that the State Audit Institution forward, as soon as possible, a comparative proposal of the requested and approved means, so that the Committee members could discuss the Proposal.

After the discussion on all the items on the agenda had been concluded, the Committee adopted in principle the bills on the Budget of the Republic of Serbia for 2008, with its accompanying Memorandum on the Budget and Economic and Fiscal Policy for 2008, projections for 2009 and 2010 and proposals of decisions granting consent to financial plans for 2008 of the Republic Fund for Pension and Disability Insurance of Employees, National Employment Service and the Republic Health Insurance Agency, on the Budgetary System, amending and modifying the Income Tax Law for citizens, amending and modifying Income Tax Law for companies and amending and modifying the Law on Republic Administrative Fees.