At the sitting held on 22 December, the Finance Committee considered six of the Bills included in the agenda for the Eighth Sitting of the Second Regular Session of the National Assembly in 2010, in principle. One of them is the Bill on the 2011 Budget of the Republic of Serbia, with its accompanying proposals of decisions granting consent to the financial plans for 2011 of the Republic Fund for Pension and Disability Insurance of Employees, the Republic Health Insurance Agency and the National Employment Service.

Elaborating next year’s budget proposal, Minister of Finance Diana Dragutinovic said that its structure was similar to this year’s budget and its main characteristics were achieving a decreased fiscal deficit, increased transfer to local self-governments and a 10% increase in social welfare allocations.

The proposed budget envisages 724.4 billion RSD of income and 844.9 billion RSD of expenditure so that the budget deficit would amount to 120.5 billion RSD.

Minister Dragutinovic said that the consumption, excise and value added taxes are the most significant in the budget income structure as they make up more than 70% of the total budget income, while in expenditure four fifths go to fixed expenditure, and discretionary expenditure makes up 10%. She stressed that one of the most important characteristics of the budget was the unfreezing of salaries and pensions in January next year.

The Committee members endorsed the 2011 Budget Bill, with its accompanying proposals of decisions, in principle.

Minister Dragutinovic also elaborated the Bill amending and modifying the Budget System Law.

The Committee also completed a debate in principle on the Bills amending and modifying the Property Tax Law, amending and modifying the Law on the Tax Payable on the Use, Keeping and Carrying Goods, amending the Excise Tax Law and amending and modifying the Value Added Tax Law, elaborated by Ministry of Finance representatives. They pointed out that the amendments and modifications to these laws would ensure a higher budgetary income in the next year.

The Committee endorsed the Bills in principle.

The sitting was chaired by Zoran Krasic, Committee Chairman.