Today, at the National Assembly House, the members of the Finance Committee discussed the issues of fiscal responsibility and the public finance reform process in Serbia, with a delegation of the International Monetary Fund.

Welcoming the IMF delegation, Committee Deputy Chairperson Branka Ljiljak stressed that the issue of fiscal responsibility is among the most important topics in Serbia today, but that it is nothing new for the deputies considering that the National Assembly had recently adopted a Budget System Law which contained an entry on fiscal responsibility. She added that the Ministry of Finance efforts on implementing fiscal responsibility in the state should be supported so as to reach public finance stability.

Head of the delegation and deputy director of IMF’s International Affairs Department Richard Hughes stressed that after the adoption of the laws regulating the issue of fiscal responsibility, the parliament had gained a different, more important role in the process. He exchanged opinions with the Finance Committee members on the effects of the introduction of fiscal responsibility and inclusion of the National Assembly into the budget process, highlighting as the key future challenge the presentation of fiscal strategy to the parliament as the basis for the adoption of next year’s budget.

Finance Committee member Vlajko Senic stressed that, in view of the level and structure of the budget deficit, the reform of public finance in Serbia must run parallel with the reform of the public sector. The adoption and following of quantitative indicators themselves are not a guarantee of quality expenditure. He deemed that the principles applied on the central level must be applied on the local level, too, as well and on public enterprises, particularly in view of the decentralisation process in Serbia.

In the course of their meeting with the Finance Committee members, the IMF delegation members went on to share their experience gained while working with the finance committees of the American Congress and some European parliaments, highlighting the importance of the role of the finance committee, information at their disposal and relations with institutions such as the State Audit Institution and Fiscal Council.

In addition to Committee Deputy Chairperson Branka Ljiljak, the meeting with the IMF delegation was attended by Committee members Vlajko Senic, Branislav Jovanovic, Balint Pasztor, Milan Vuckovic, Mihajlo Puric and Milorad Buha.

In addition to Richard Hughes, the IMF delegation visiting Belgrade at the invitation of the Ministry of Finance comprises Brian Olden, Pat Ulla, Barry Anderson, Eva Jenkner and IMF resident representative Bogdan Lissovolik.