The session of the Finance Committee held on 17 November 2004 saw the discussion and adoption in principle of the Bill on the Budget of the Republic of Serbia for 2005 with the associated Memorandum on the Budget and Economic and Fiscal Policy for 2005 with its associated projections for 2006 and 2007. The Committee also discussed proposals of decisions authorising 2005 financial plans of the Republic Fund for Pension and Disability Insurance of Employees, the Republic Fund for Pension and Disability Insurance of Agricultural Producers, the Republic Fund for Pension and Disability Insurance of Individual Professions, the Republic Health Insurance Agency, and the National Employment Service.

The Minister of Finance, Mladjan Dinkic, presented the Bill, underlining that economic policy in 2005 would have five key features: restrictive monetary policy, responsible fiscal policy, a new policy toward salary payments, faster economic restructuring and privatisation, and the restructuring of socially-owned enterprises.

Presenting the Bill, Mr Dinkic cited projected revenue as being 396.1 billion dinars, while projected expenditure would amount to 416.6 billion dinars. According to the minister, the planned budget deficit for 2005 is 38% lower than this year’s, and amounts to 20.5 billion dinars.