At the sitting held on 24 October, the Finance Committee members discussed in principle the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of: a) the Republic Fund for Pension and Disability Insurance, b) the National Employment Office and c) the Republic Institute for Health Insurance, submitted by the Government of the Republic of Serbia.

The sitting was chaired by the Committee Chairperson Jorgovanka Tabakovic and attended by the Minister of Finance Dijana Dragutinovic and associates.

Minister Dragutinovic presented the Bill and proposed decisions to the Committee members stressing that a new methodology was implemented in the making of the 2008 budget rebalance. The rebalance predicts an increase in the budget deficit of 0.2% of GDP, which is not excessive compared to international standards. Total income amounts to about 650 billion dinars, the expenditure to about 696 billion, and the deficit to about 45 billion dinars or 1.7% of GDP. The reason for the deficit is the change in the Government’s priorities reflected above all in the 10% increase in pensions, increase in expenditure on Corridor 10 and increase in expenditure on subventions, above all in agriculture.

By a majority of votes, the Committee adopted in principle the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of: a) the Republic Fund for Pension and Disability Insurance, b) the National Employment Office and c) the Republic Institute for Health Insurance. The Committee members, deputies Malden Grujic and Slobodan Maras reserved their opinion, and the Finance Committee Deputy Chairperson Branka Ljiljak was appointed Committee rapporteur.

In the continuation of the seventh sitting, on 28 October, under the chairmanship of the Committee Deputy Chairperson Branka Ljiljak, the Committee discussed the amendments submitted to the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of: a) the Republic Fund for Pension and Disability Insurance, b) the National Employment Office and c) the Republic Institute for Health Insurance.

Out of the 84 amendments submitted, the Committee ruled by a majority of votes to accept only one amendment submitted by deputies Balint Pastor, Elvira Kovac, Arpad Fremond, Laslo Varga, Esad Dzudzevic and Bajram Omeragic.

The committee discussed and accepted in principle the Bill on loan abeyance and write-off on grounds of mandatory health insurance contributions and the Bill on the write-off of interest accrued on obligations under certain taxes and contributions for mandatory social insurance, submitted by the Government.

In the continuation of the sitting, on 3 November 2008, chaired by the Deputy Committee Chairperson, Branka Ljiljak, the Committee members discussed in detail the Bill on loan abeyance and write-off on grounds of mandatory health insurance contributions.

The deputies submitted a total of 5 amendments to the Bill. The Government of the Republic of Serbia and the Committee accepted three amendments by deputies Zeljko Ivanji and Simo Vukovic, while deputy Milan Dimitrijevic’s amendment was not accepted. Deputy Zoran Kasalovic did not submit his amendment to article 8 of the Bill in due time, and the Committee members decided to propose to the National Assembly an amendment of the same content as a Finance Committee amendment.