At the sitting held on 13 December, the Industry Committee members considered the Information on the proposed subsidies for the economy according to the 2011 Budget Proposal and the Republic of Serbia Energy Agency’s 2011 Financial Plan with the Agency’s Activity Report for the period January-September 2010.

Assistant Minister of Economy and Regional Development Milan Josipovic briefed the Committee members on the Ministry’s plans regarding next year’s subsidies for the economy. He stressed that a 3.5 billion RSD allocation was planned as a stimulus for the industry and construction in the upcoming year which is the same amount as this year’s. This year’s budget rebalance secured an additional 630 million RSD but the funds are still insufficient considering that the number of beneficiaries is on a constant rise due to incomplete privatization and termination of privatization contracts. As relates to the structure, most of the funds still go to the metal complex. The sale of tractors is still to be subsidized by 450 million RSD next year (300 million this year) in Serbia, while in the Republic of Srpska 50 million RSD (47 million this year) would be allocated for the same purpose. 2 billion RSD have been allocated to stimulate the production of rail vehicles, 300 million for buses etc. Other types of stimulus will also be continued such as 4 billion RSD in subsidies for economic liquidity, 1.5 billion RSD subsidies for the purchase of domestic products, 800 million for investment loans and 3.6 billion RSD for construction loans. He repeated to the Committee members that these figures are just the Ministry’s plan and drafts for the budget proposal. Summarising his presentation, he stated that the situation would be the same as this year and cited the main economic growth data in the first 10 months of the year. Production exhibited a 3.7% growth compared to the same period last year, export 15.4% growth, import 3.7%, and the overall foreign trade grew by 12.6%. All this contributed to the country’s payment deficit decrease, Josipovic concluded.

Debating the item on the agenda, the Committee members exchanged their opinions on the 2011 allocations for the industry, the industry and export development strategy and accepted the Information on the proposed subsidies for the economy according to the 2011 Budget Proposal, by a majority of votes.

The Committee went on to discuss the Republic of Serbia Energy Agency’s 2011 Financial Plan with the Agency’s Activity Report for the period January-September 2010, presented by Ljubo Macic, Agency Council representative.

He briefed the Committee members on the Agency’s new competences, the need to increase the number of Agency employees, the upcoming election of new Council members. He added that with the modifications the number of employees should be raised to 37 and the remaining funds planned for next year are the same as this year’s.

Among other things, the debate tackled the prices of electric energy and natural gas in the country and announcements of possible increase in the price of these energy sources next year.

Following the debate, the Committee members adopted the Decision Proposal granting consent to the Republic of Serbia Energy Agency’s 2011 Financial Plan with the Agency’s Activity Report for the period January-September 2010, by a majority of votes.

The sitting was chaired by Milorad Buha, Committee Chairman.