At the sitting held on 16 December, the Finance Committee members discussed the Bill on the Budget of the Republic of Serbia for 2009, with its accompanying Memorandum on the Budget and Economic and Fiscal Policy for 2009, projections for 2010 and 2011 and proposals of decisions granting consent to financial plans for 2009 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 Proposal of the Decision on the Election of a State Audit Institution Council Member.

The sitting was chaired by the Committee Deputy Chairperson, Branka Ljiljak and attended by the Minister of Finance, Diana Dragutinovic and associates.

Presenting the 2009 Budget Bill, Minister Dragutinovic stated the reasons for its delay: the drafting of the 2008 budget rebalance, impact of the world economic crisis and negotiations regarding the MMF arrangement. The revenue projection in 2009 amounts to about 689.7 billion dinars. The budget is characterised by a structural change in revenue, containing more non-tax than tax revenue. The projection is based on an inflation of about 8% to 8.5% and economic growth between 3% and 3.5%. The budget also envisages a one-sided implementation of SAA, modification of customs tariffs and modification of excise policy. Planned budgetary expenses amount to 748.7 billion dinars, and the deficit somewhat less that 50 billion dinars. They are characterised by a strict revenue policy. The salaries of budget beneficiaries will grow in 2009 to the level of the inflation growth rate. Subsidies have been reduced to about 41 billion dinars. Regarding transfer to other levels of government, 3.6 billion dinars have been allocated to the health insurance fund (above all for the about 700 000 citizens without health insurance). 189.3 billion dinars have been allocated to the PIF, which means a new pension level in 2009, and 25.9 billion dinars have been allocated to the military beneficiaries social insurance fund. Capital expenses amount to 40 billion dinars, 20 billion of which are for the NIP.

Following a discussion, the Committee members adopted the Bill on the Budget of the Republic of Serbia for 2009, with its accompanying Memorandum on the Budget and Economic and Fiscal Policy for 2009, projections for 2010 and 2011 and proposals of decisions granting consent to financial plans for 2009 of the Republic Fund for Pension and Disability Insurance of Employees, National Employment Service and the Republic Health Insurance Agency by a majority of votes. Committee members Slobodan Maras and Mladen Grujic reserved their opinions on the Bill.

The Committee went on to discuss the Proposal of the Decision on the Election of a State Audit Institution Council Member. G17 Plus Deputy Group nominated Danka Aksentijevic for Council member. In a short discussion on the Proposal of the Decision the Committee members agreed to vote on this item on the agenda after further consultations.