State Secretary at the Ministry of Finance Dusan Nikezic stated that the envisaged budgetary income amounts to 750 billion RSD, and expenditure to 890 billion. The planned 140 billion deficit is below 4.5% of the national product which complies to Serbia’s programme with the IMF. Nikezic pointed out that, looking at the functional structure, the proposed budget is frugal.

Dr Pavle Petrovic, President of the Fiscal Council, stressed that the Fiscal Council suggested that it would be better if the envisaged budget deficit stayed below 4.5% even though the percentage complied with the IMF programme. Petrovic stated that, by the end of 2012 the public debt could exceed 50% of the gross domestic product which could be a problem. The President of the Fiscal Council stated that the current economic trends point to a possible stagnation for Serbia next year and a 0% economic growth rate.

The Committee members adopted the Bill on the 2012 Budget of the Republic of Serbia, with its accompanying proposals of decisions granting consent to the 2012 financial plans of: 1) the Republic Fund for Pension and Disability Insurance, 2) the Republic Health Insurance Fund, 3) the National Employment Service, in principle.

The Committee went on to consider and adopt, in principle, the Bill amending and modifying the Excise Tax Law, submitted by the Government. State Secretary Nikezic stated that the amendments and modifications pertain to tobacco excise tax and in fact are aimed at harmonising the excise policy with European Union standards.

The sitting was chaired by the Committee Chairman, Zoran Krasic.