Download ON AMENDMENTS AND ADDENDA TO THE BUDGET SYSTEM LAW

LAW
ON AMENDMENTS AND ADDENDA TO THE BUDGET SYSTEM
LAW
Article 1
Article 1 of the Budget System Law (RS Official Gazette, No. 54/09) shall be
changed to read as follows:
„Article 1
This Law shall regulate the following: planning, drafting, adoption and
execution of the Republic of Serbia Budget; planning, drafting, adoption and
execution of Autonomous Provinces' and local self-government units' budgets
(hereinafter: local governments' budget); drafting and adoption of financial plans of
the Republic Pension and Disability Insurance Fund, Republic Institute for Medical
Insurance and National Employment Bureau (hereinafter: the organizations for
mandatory social insurance); budget accounting and reporting, financial
management, control and audit of public resources' users and Republic of Serbia
Budget, local governments' budgets and financial plans of organizations for
mandatory social insurance; mandate and organization of Treasury Administration,
and Ministry of Finance administration bodies (hereinafter: the Treasury) and local
governments' treasuries; other issues of importance for budget system functioning.
This Law shall regulate the fiscal principles, rules and procedures for fiscal
framework, in order to provide for a long-term sustainability of the fiscal policy.
This Law shall introduce the Fiscal Council, as an independent body to
assess the credibility of fiscal policy from the aspect of the defined fiscal rules'
implementation and thus to provide for the public character and accountability in
fiscal policy management.
Individual provisions of this Law shall regulate budget relations and rules that
are applied to extra-budgetary funds, companies and other legal entities in which the
State, on all the levels, has a decisive influence on management, and especially on
the following: drafting of financial plans, monetary assets' management, loans' taking
and issuing of guarantees, accounting, drafting and submission of reports and
execution of budget control, which, owing to the sources of financing and control,
include the general levels of the State (hereinafter: the extra-budgetary spending
units).
This Law shall in addition regulate the types and categories of public
revenues and proceeds and public expenses and expenditures. “
Article 2
In Article 2, item 3, the following phrase: "The Memorandum on Budget and
economic and fiscal policy (hereinafter: the Memorandum)“ shall be replaced by the
phrase: "Report on fiscal strategy“.
Item 23 shall be amended to read as follows:
"23) Budget is an inclusive plan of revenues and proceeds and a plan of
expenses and expenditures, the organization of which is divided in two separate
accounts: a) account of revenues and proceeds made from the sales of non-financial
property and expenses and expenditures for the purchase of non-financial assets
and b) account of financing; the Budget is the principal document of the economic
policy of the Government;“.
-2After the item 25, items 25а to 25l shall be added, which shall read as follows:
"25а) Fiscal policy includes decisions reached or activities taken by
government bodies in relation to the public revenues and proceeds and expenses
and expenditures and accumulation of public assets and liabilities with the aim to
influence the economic trends and achievement of fiscal policy targets;
25b) Fiscal policy targets include precise numerical target values of main
fiscal aggregate sums that the Government strives to achieve in its Budget;
25c) Anti-cyclical fiscal policy means that the fiscal deficit exceeds target
deficit for years when GDP growth rate (hereinafter: the GDP) is lower than potential
GDP growth rate, while in the years where the GDP growth rate exceeds the
potential GDP growth rate, the fiscal deficit is smaller than its target level and/or a
surplus is achieved;
25d) Potential GDP growth rate is the highest growth rate that can be
reached over a given period, without any increase in inflation rate;
25e) Fiscal principles are the principles of responsible fiscal management;
25f) Fiscal procedures include drafting, submission and publishing of
reports, forecasts, estimates and statements as specified by this Law;
25g) Fiscal risks are the short-term and medium-term variations of fiscal
variables against the values envisaged in the Budget, financial and/or other reports
or projections of public finances;
25h) Fiscal rules include setting limitations for fiscal policy, in order to
improve the budget execution discipline, improve coordination among different levels
of public administration and reduce uncertainties about the future fiscal policy;
25i) Fiscal Council is an independent body that is established with the aim
to improve the culture of fiscal accountability in the Republic of Serbia, by means of
its independent analysis of the fiscal policy and by means of encouraging experts'
debates about the fiscal policy;
25j) The Fiscal Strategy Report is the document that brings the Government
fiscal policy targets and the assessment of fiscal policy sustainability, which shall be
submitted by the Government to the National Assembly;
25k)Fiscal sustainability indicates potential for implementation of a given
fiscal policy over a longer period of time, without any significant changes in tax policy
or in expenses and expenditures;
25l) Progress Report is an Annex to the Fiscal Strategy Report that contains
an inventory of results achieved within the envisaged fiscal policy from the Fiscal
Strategy Report which was adopted during the previous fiscal year;“.
In item 34, after the word: "credits“, the following words shall be added: "that
is, issuing of securities,“.
Item 43 shall be deleted.
After item 51, items 51а to 51d shall be added, which shall read as follows:
"51а) Management responsibility is the responsibility of the top
management heading the public fund beneficiaries for the financial, management and
program-related tasks and responsibilities that were assigned to them;
51b) Internal financial control in the public sector is an all-inclusive
system of management and control measures and for the control of public revenues,
expenses, assets and liabilities, which is established by the Government through the
public sector organizations with the aim to align the management and control of
-3public funds, including the international funds, with the regulations, budget and sound
financial management principles, that is, with the principles of efficiency,
effectiveness, profitability and openness;
51c) Financial management and control is a system of policies, procedures
and activities that is established, maintained and regularly updated by the head of
organization, and which provides, by means of risk management, an assurance to a
reasonable degree that the that the objectives of the organization will be achieved in
an adequate, cost-effective, efficacious and effective manner;
51c) Internal audit is the activity that offers an independent and objective
verification and a consultancy activity, with the aim to contribute to the improvement
of operating activities of that organization; assists organization to achieve its
purposes, by systematic and disciplined assessment and evaluation of risk
management, control and management of organization;“.
In item 60, the wording: "of the Memorandum“ shall be replaced by the
wording: "of the Fiscal Strategy Report".
Article 3
A new item 4 shall be added in the Article 5, to follow the item 3, which shall
read as follows:
"In case that revenues and proceeds, expenses and expenditures, as well as
the budget of local governments are budgeted on the pro rata basis, as a percentage
of the Republic of Serbia Budget, the amount thereof, that is, the percentage thereof
shall be determined by using the revenues and proceeds from the sales of nonfinancial assets as the calculation basis, unless otherwise specified by law.“
Items 4 to 10 shall become items 5 to 11.
Article 4
The wording "that are included in the system of consolidated treasury
account" in the title above Article 8 shall be deleted.
Items 3 to 5 shall be added within the Article 8, which shall read as follows:
"The Republic body in charge of the statistics and related tasks shall, in
cooperation with the Ministry, draft the list of budgetary and non-budgetary
beneficiaries of public funds from the general administration level sector once a year,
information on operating activities of which shall be used for the purposes of
statistical reporting about the fiscal position, that is, the fiscal policy of the country.
The list of entities from the paragraph 3 of this Article shall be drafted based
on the internationally recognized standards.
The Republic body in charge of the statistical tasks shall define the reporting
methods and deadlines for all the entities which have been established to belong to
the general administration sector.“
Article 5
Item 10 shall be added within the Article 9, which shall read as follows:
"The Minister shall specify the manner of placement of unemployed monetary
assets.“
-4Article 6
In Article 14, item 2, the full stop at the end shall be replaced by semicolons
and item 4 shall be added, which shall read as follows:
"4) Other proceeds prescribed by the Law.“
Article 7
Item 2 in Article 17 shall be deleted.
Article 8
Item 7 in Article 19 shall be amended to read as follows:
"7) Concession fee;“.
Article 9
In item 4 of the Article 20, the word "reserves“ shall be replaced by the
wording: "commodity reserves“.
The full stop at the end shall be replaced by semicolon and item 7 shall be
added to read as follows:
"7) Other proceeds specified by law.“
Article 10
Article 21 shall be amended to read as follows:
"Article 21
Proceeds from borrowing and sales of financial assets shall comprise of the
following:
1)
Proceeds from loans taking in the domestic market;
2)
Proceeds from loans taking in the international markets;
3)
Proceeds from the sales of financial assets in the domestic market;
4)
Proceeds from the sales of financial assets in the international market;
5)
Other proceeds specified by law.“
Article 11
In Article 22, following paragraph 1, new paragraphs 2, 3 and 4 shall be
added to read as follows:
"In planning of own revenues from paragraph 1 of this Article, the budget
beneficiaries and the beneficiaries of mandatory social insurance funds are obliged to
abide by the principle of accuracy in such a manner as to plan their own revenues
realistically and to allocate them for use in accordance with the needs.
Assets from own revenues, which are as such, pursuant to a special law,
used for functioning of administration bodies within the Ministry, and are not allocated
by a special act by the Government, shall be used for functioning of the Ministry and
administration bodies within the Ministry according to the Program and spending
schedule that shall be passed by the relevant Minister.
The Program from the paragraph 3 of this Article shall contain, above all, the
plan for the use of funds for professional education courses, training and proficiency
courses and educational courses of the employees, bonuses for the employees,
-5design, building and maintenance of the information system, purchase of equipment
for work, construction and purchase of business premises."
In the former paragraph 2, which shall become paragraph 5, after the word
"Government", the following phrase shall be added: "that is, the relevant executive
body of the local government,".
After the former paragraph 2, which shall become paragraph 5, paragraph 6
shall be added to read as follows:
"The Government, that is, the relevant executive body of the local government
may, upon suggestion by the Minister, that is, by the local administration body
responsible for finances, reach a decision that a portion of public funds from
paragraph 1 of this Article, which were realized in the current year, that is, those that
remained unspent from the previous years, shall represent the general budget
revenue in the current year."
Article 12
In Article 23, item 1 after the sub-item 6, sub-item 7 shall be added to read as
follows:
"(7) Other tax, in accordance with a special law;“
In item 2, after the sub-item 3, sub-item 4 shall be added to read as follows:
"(4) Taxes for special products and activities;“
In item 6, after the sub-item 3, sub-items 3а and 3b shall be added to read as
follows:
" (for) proceeds from the sales of valuables;
(3b) proceeds from the sales of natural resources;“.
Article 13
In Article 24, paragraph 1, after item 2, item 2а shall be added to read as
follows:
"2а) Other tax or a portion of tax pursuant to a special law;“.
In item 7 after the sub-item 4, sub-items 4а and 4b shall be added to read as
follows:
"(4а)
Proceeds from the sales of valuables;
(4b) Proceeds from the sales of natural resources;“.
Article 14
In Article 25, paragraph 1, in item 1 after the sub-item 4, sub-item 5 shall be
added to read as follows:
" (5) Other tax, pursuant to a special law;“
In item 7, after the sub-item 4, new sub-items 4a and 4b shall be added to
read as follows:
"(4а) Proceeds from the sales of valuables;
(4b) Proceeds from the sales of natural resources;“
-6Article 15
After the Article 27, new Sections IIА and IIB with Articles 27а to 27j and titles
above those Articles shall be added to read as follows:
„IIa GENERAL FISCAL FRAMEWORK
Responsibility
Article 27a
The Government is responsible for implementation of fiscal policy and for the
management of public finances and funds of the Republic of Serbia in accordance
with the principles, rules and procedures established by this Law.
Local government executive body is responsible for implementation of fiscal
policy and management of public property, revenues and proceeds and expenses
and expenditures in the manner prescribed by this Law.
IIb PRINCIPLES, PROCEDURES AND RULES OF RESPONSIBLE
FISCAL MANAGEMENT
Fiscal Principles
Article 27b
General principles of responsible fiscal management are as follows:
1) Accountability principle shall denote that the Government, that is, the local
government executive body, are accountable to the National Assembly, that is, to the
local government assembly for the execution of their respective mandates in relation
to the fiscal policy management;
2) Fairness principle shall denote that the fiscal policy management is
implemented by taking into account its impact on the wellbeing of the present and
future generations;
3) Responsibility principle shall denote that the management of public assets
and liabilities, natural resources and fiscal risks, is implemented in such a manner as
to strengthen the fiscal sustainability;
4) Stability principle shall denote that the fiscal policy is implemented in such
a manner as not to cause sudden changes in the movements of macro economic and
fiscal indicators;
5) Transparency principle shall denote that the tasks and responsibilities of
individual state bodies, that is, those of the local government bodies and officials in
relation to the fiscal policy management are clearly identified and defined; that
updated financial and non-financial information have been provided in relation to the
fiscal policy management, and that these are available so that effective public audit
of fiscal policy management and public finances state is enabled; that those
responsible for publishing of such information do not withhold such information,
except in cases where the publishing of such information would incur significant
damage to national safety, defence or international relations of the Republic of
Serbia.
The Government shall identify and implement the fiscal policy targets while
guided by the following special principles:
1) Sustainability of the state debt;
-72) Regular servicing of the debt;
3) Predictability of tax rates' and tax bases' levels for the following years;
4) Responsible fiscal risks' management;
5) Management of public assets and liabilities, natural resources in the
manner that will not generate a burden for the future generations;
6) Stimulating economic growth.
Fiscal Strategy Report
Article 27c
The Government shall submit their fiscal strategy report to the National
Assembly each fiscal year.
The principal objectives of the Fiscal Strategy Report are as follows:
1) Establishing the Government's short-term and medium-term fiscal policy
targets for the period of three consecutive fiscal years, starting from the fiscal year for
which the Fiscal Strategy Report is being submitted;
2) Providing a detailed explanation of alignment of the said medium-term
targets with the fiscal principles and rules that are established by this Law;
3) Assessment of the fiscal policy impact on the inter-generation allocation
of income, and the fiscal policy sustainability study.
Procedures in Adoption of Fiscal Strategy Report
Article 27d
Draft Report on Fiscal Strategy shall be prepared by the Minister and it shall
be submitted to the Fiscal Council within the deadline provided in the Budget
Calendar.
The Fiscal Council shall consider the draft Report and pass their opinion to
the Minister.
After having obtained the opinion of the Fiscal Council, the Minister shall
prepare draft Report on Fiscal Strategy.
In case that any recommendation from the Fiscal Council has not been
included in the Fiscal Strategy Report, it shall by all means be indicated, together
with the reasons for such decision, and the integral version of opinion of the Fiscal
Council shall be attached and submitted together with the Fiscal Strategy Report.
After having adopted it, the Government shall submit their Fiscal Strategy
Report to the National Assembly for further consideration.
The National Assembly shall consider the Fiscal Strategy Report, in order to
make an assessment on whether the Report has been drafted in accordance with the
fiscal principles and rules specified in this Law.
The National Assembly shall inform the Government about their comments
and recommendations on the Fiscal Strategy Report.
In case that the Government, on suggestion by the Minister, decide to make
amendments and addenda to the Fiscal Strategy Report based on the
recommendations from the National Assembly, such amendments and addenda shall
be entered in the revised Fiscal Strategy Report, which shall be delivered to the
National Assembly prior to the delivery of draft budget for the following year.
-8Content of the Fiscal Strategy Report
Article 27e
The Fiscal Strategy Report shall contain the following:
1) Medium term projections of macroeconomic aggregates and indicators;
2) Medium term projections of fiscal aggregates and indicators;
3) Objectives and directives for economic and fiscal policy of the Government
for the medium term period for which the Fiscal Strategy Report is adopted;
4) Report on taxation policy, including the report tax expenses;
5) Consolidated budget for the general level of the state, as well as the
consolidated budgets of the central and local state levels;
6) An overview of priority financing areas;
7) Medium term framework for the Republic of Serbia Budget expenses,
including the total expenses per individual budget beneficiaries for the following
budget year and for two following budget years;
8) A summary and an analysis of fiscal implications from economic policies
and structural reforms;
9) An assessment and a quantification of fiscal risks and potential liabilities;
10) Strategy for the state debt management over the period for which the
Fiscal Strategy Report is adopted.
The Fiscal Strategy report shall contain the following three mandatory
Annexes:
1) Fiscal Council Opinion on draft Fiscal Strategy Report;
2) The National Bank of Serbia Opinion on draft Fiscal Strategy Report;
3) Progress report about the implementation of fiscal policy that is defined in
the Fiscal Strategy Report which was adopted in the previous fiscal year.
The revised Fiscal Strategy Report shall additionally contain a summary of no
specific purpose and specific purpose transfers from the Republic of Serbia budget
individually for each local self-government unit.
Progress Report
Article 27f
The Fiscal Strategy Report shall contain, in the form of a mandatory Annex,
the Progress Report on the implementation of fiscal policy that is defined in the Fiscal
Strategy Report that was adopted in the previous fiscal year.
The Progress Report shall contain the following mandatory information:
1) Updated assessment of medium term macroeconomic and fiscal trends
and projections contained in the Fiscal Strategy Report that the Progress Report
accounts for in detail;
2) A Report section containing the progress assessment against the defined
fiscal policy and indicators as specified in the Fiscal Strategy Report that the
Progress Report accounts for in detail;
3) A Report section containing the assessment of the fiscal policy results and
the measure to which the Government succeeded in applying the fiscal policy
-9principles and rules of responsible fiscal management in the previous fiscal year, as
specified in this Law;
4) Other information as specified by the Minister.
Fiscal Rules
Article 27g
Fiscal rules pertain to the general state level and these can be general and
special rules.
The general fiscal rules shall specify the target medium term fiscal deficit and
the maximum ratio of debt to GDP with the aim to provide the long term fiscal policy
sustainability in the Republic of Serbia.
The special fiscal rules shall specify the trends in salaries and pensions, as
well as the share of public investments in calculation of fiscal deficits and public
expenses over the 2011 - 2015 period.
The general fiscal rules are as follows:
1) Target annual fiscal deficit shall amount to GDP 1% in medium term
perspective;
2) The general state level debt, excluding the liabilities incurred from
restitution, shall not exceed GDP 45%.
The fiscal deficit shall be less than targeted or there will be a fiscal surplus in
years where the GDP growth rate exceeds potential GDP growth rate, while in years
when the growth rate is less than potential the fiscal deficit exceeding the target
deficit will be achieved.
In order to ensure that the actual medium term fiscal deficit is equal to the
target fiscal deficit, and in order to enable the realization of anti-cyclical fiscal policy
at the same time, the following formula will be used to determine the fiscal deficit in
the year t:
dт =dт-1 – а(dт-1-d*)-b(gт-g*)
Where dт and dт-1 present deficits achieved in years т and т-1, d* is the target
fiscal deficit determined at the level of GDP 1%, gт is the actual GDP rate in year т,
and g* is the potential medium term actual GDP growth rate.
The deficit in the formula is presented as a percentage of GDP, while the
GDP growth rates are presented as percentages.
The adjustment coefficient 'a' indicates the pace at which the actual deficit
approximates the target deficit, and the coefficient 'b' indicates the divergence of the
fiscal deficit in the year t from the target deficit due to the difference in GDP growth
rate in the year t from the potential GDP growth rate.
In 2011 to 2013 period, the numerical value of the coefficients has been
determined at the level of a=0.3 and b=0.4 , while the potential GDP growth rate has
been envisaged as g*=4%.
As of 2014, the numerical value of the coefficients a and b, as well as the
potential GDP growth rate, shall be specified by the Fiscal Council and it will be valid
over the period of thee years at the minimum.
The general state level debt shall include the direct general state level debt
and the issued general state levels guarantees (the indirect debt) to both the
domestic and international creditors.
- 10 In case that the general state level debt excluding the debt from restitution
exceeds GDP 45%, the Government shall be obliged to submit the debt reduction
program against GDP to the National Assembly in addition to the budget for the
following year.
The Fiscal Council shall submit to the National Assembly their expounded
opinion about the Government program for debt reduction, and the representative of
the Fiscal Council shall expound the opinion before the National Assembly.
The Government shall be obliged to harmonize the draft law on restitution
with the principles of fiscal responsibility.
The Fiscal Council shall submit to the National Assembly their expounded
opinion on whether the provisions on restitution to former owners in money or
through an emission of state securities have been duly harmonized with the
principles of fiscal responsibility, and the representative of the Fiscal Council shall
expound the opinion before the National Assembly.
The special fiscal rules shall ensure that the fiscal deficit reduction against
GDP is predominantly achieved by means of reduction of current public spending.
The objective of the special fiscal rules is also to achieve the change the
public spending structure towards the reduction of current expenses and towards the
increase of public investments.
Individual salaries of the employees in the public sector and pensions shall be
increased in January 2011 by the amount of consumer prices growth over the past
six months.
In April 2011, salaries and pensions shall be increased by the amount of
consumer prices growth over the past three months, with an increase by one half of
the actual GDP growth over the past year if such growth was positive.
In April 2012, salaries and pensions shall be increased by the amount of
consumer prices growth over the past six months, with an increase by one half of the
actual GDP growth over the past year in case that such growth was positive.
In October 2011 and in October 2012, salaries and pensions shall be
increased to match the growth of consumer prices over the past six months.
From 2013 to 2015, the aggregate amount of funds for salaries shall grow at
the rate of consumer prices increased by one half of the actual GDP growth from the
previous year.
From 2013 to 2015, the average pensions shall grow at the growth rate of
consumer prices increased by the GDP rate of more than 4%.
The fiscal rules that regulate the growth of pensions and salaries shall be
applied after 2015, too, until the share of pensions in GDP reaches 10%, and the
share of salaries in GDP reaches 8%.
In calculation of consolidated general state deficit for 2011, expenses and
expenditures shall not include the portion of the total public investments that exceeds
4% of GDP and over the period 2012 to 2015 the portion of public investments that
exceeds GDP 5%.
The portion of public investments above the highest levels by which the
increase of the consolidated general state deficit is allowed in accordance with the
general fiscal rule, must not exceed GDP 2%.
The Fiscal Council shall, in cooperation with the State Auditing Institution,
pass their opinion on whether the share of public investments is in accordance with
the accounting standards or not.
- 11 Fiscal Rules for Local Government
Article 27h
The local government fiscal deficit may occur only as a result of public
investments.
The local government fiscal deficit is a constituent part of the consolidated
general state deficit.
The local government fiscal deficit in any year cannot exceed 10% of their
revenues in that same year.
Local government executive body may submit a request to the Ministry for the
approval of fiscal deficit above the said percentage only if such fiscal deficit is the
result of their realization of public investments.
The request for approval of excessive deficit shall be submitted to the Ministry
no later than May 1 of the current year, for the following budget year.
The request for approval of excessive deficit shall contain a detailed
justification of investments that cause the excess in deficit, an analysis of the long
term sustainability of the local government debt and other information at the request
by the Ministry.
The Ministry is obliged to respond to such a request from the local
government no later than June 30 and to provide an explanation of their decision.
While approving the excessive deficit, the Ministry shall take into account both
the justification of the request and the potential to fit the request within the planned
deficit of consolidated state sector for the following year.
In case that the local government spending should exceed the deficit limit in a
certain year without an approval from the Ministry, the Minister shall discontinue
and/or reduce the transfer of funds from the Republic of Serbia budget, that is, the
relative share of income taxes and companies' profit taxes in the following budget
year, for the amount of such overdraft.
Exceptional Circumstances
Article 27i
The Government may, under exceptional circumstances and for a limited
period of time only, deviate from the fiscal principles and rules specified by this Law,
in cases of natural disasters and external shocks that may have an impact on the
human health, national safety and drop in the economic activities, upon reaching a
decision on such a deviation.
The Government shall submit a report to the National Assembly, in which they
shall state clearly the following:
1) The reasons for the deviation from the fiscal principles or rules;
2) The measures that the Government intend to take in order to resume the
course of abiding by the fiscal principles or rules;
3) The time period after which the Government expect that they shall be in the
position to resume the course of abiding by the fiscal principles or rules.
The Government shall submit the report from the paragraph 2 of this Article to
the National Assembly within thirty days from the date of adoption of the decision
from the paragraph 1 of this Article or in the next annual Fiscal Strategy Report,
whichever occurs first.
- 12 Disclaimer
Article 27j
Attached to the Fiscal Strategy Report, a Disclaimer shall be submitted, which
is signed by the Minister.
The Disclaimer shall contain the mandatory statement that all the reports
covered by the Disclaimer are:
1) Prepared by using analysis methods and assessments that meet highest
standards of professional integrity and expertise;
2) Based on updated and accurate economic and fiscal information available
at the time when the reports were concluded;
3) Inclusive of all the decisions adopted by the Government, which have
significant economic or fiscal impact of which the Minister was aware at the time
when the Disclaimer was signed.“
Article 16
Article 31 shall be amended to read as follows:
"Article 31
The procedure of budgeting and adoption of budget and financial plans for the
organizations for mandatory social insurance shall be executed in accordance with
the budget calendar, in the following manner:
1)
Calendar for the Republic of Serbia level:
(1) February 15 – the Minister shall provide instructions for priority areas
financing proposal;
(2) March 15 – the Republic of Serbia Budget direct beneficiaries, based on
the instruction from the sub-item (1) of this item, shall submit to the Ministry their
proposals for identification of priority areas financing for the budget year and for the
two following fiscal years;
(3) April 30 – the Minister, in cooperation with the ministries and institutions
in charge of the economic policy and economic system, shall prepare the Fiscal
Strategy Report, which contains the economic and fiscal policy of the Government
with the projections for the budget year and for the following two fiscal years;
(4) May 15 – the Minister shall deliver draft Fiscal Strategy Report to the
Fiscal Council;
(5) June 15 – the Fiscal Council shall pass their opinion about the draft
Fiscal Strategy Report;
(6) July 1 – the Minister shall pass the draft Fiscal Strategy Report to the
Government for adoption;
(7) July 15 – the Government shall adopt the Fiscal Strategy Report and they
shall pass it to the National Assembly for consideration;
(8) August 1 – the Minister shall deliver the instruction for draft Republic of
Serbia Budget;
(9) August 1 – the Minister shall deliver the Fiscal Strategy Report to the
local government and mandatory social insurance organizations;
- 13 (10) August 31 – National Assembly delivers their comments and
recommendations on the Fiscal Strategy Report to the Government;
(11) September 15 – the Republic of Serbia Budget direct beneficiaries and
mandatory social insurance organizations shall deliver their draft medium-term and
financial plan to the Ministry;
(12) October 1 – the Government, upon proposal by the Minister, adopts the
revised Fiscal Strategy Report, together with information on financial and other
effects of the new policies, while taking into account the macro economic framework
that was updated after April 30;
(13) October 5 – the Government shall deliver the revised Fiscal Strategy
Report to the National Assembly;
(14) October 15 – the Minister shall deliver to the Government draft law on
the Republic of Serbia Budget, draft Decisions on granting approvals for financial
plans of mandatory social insurance organizations and financial plans of mandatory
social insurance organizations;
(15) November 1 – the Government shall adopt draft Law on the Republic of
Serbia Budget and deliver it to the National Assembly together with the draft
Decisions on granting approvals for financial plans of mandatory social insurance
organizations and the financial plans of mandatory social insurance organizations;
(16) December 15 – the National Assembly shall pass the Law on the
Republic of Serbia Budget and the Decisions on granting approvals for financial
plans of mandatory social insurance organizations;
2)
Budget Calendar for local governments:
(1) August 15 – local administration body in charge of finances shall issue
instructions for draft local government budget;
(2) September 15 – local government budget direct beneficiaries shall deliver
draft financial plan to the local administration body in charge of finances for the
budget year and for the following two fiscal years;
(3) October 15 – local administration body in charge of finances shall deliver
draft Decision on Budget to the relevant executive body of the local government;
(4) November 1 – the relevant executive body of the local government shall
deliver draft Decision on Budget to the local government assembly;
(5) December 20 – local government assembly shall pass the Decision on
Local Government Budget;
(6) December 25 – local administration body in charge of finances shall
deliver the Decision on Local Government Budget to the Minister.
The deadlines from paragraph 1 of this Article shall be the final deadlines in
the Budget Calendar.“
Article 17
The titles above Article 33 and Article 33 shall be deleted.
Article 18
The titles above Article 34 and Article 34 shall be deleted.
- 14 Article 19
Paragraph 1 of the Article 51, after the word "Ministry“, the wording "Treasury Administration“ shall be added.
Article 20
In Article 56, following paragraph 4, new paragraphs 5 and 6 shall be added
to read as follows:
"In case of the budget beneficiaries where the total annual appropriation for
forced collection has been used the Treasury Administration shall reallocate funds by
reducing the second appropriation for the amount of forced collection.
The Treasury Administration shall execute the forced collection orders.“
The former paragraphs 5, 6 and 7 shall become paragraphs 7, 8 and 9.
Article 21
In Article 58, paragraph 1, the word "bookkeeping" shall be replaced by the
word "accounting".
In paragraph 2, the word "bookkeeping" shall be replaced by the word
"accounting".
Article 22
In paragraph 5 of the Article 60, after the word "five" the work "working" shall
be added.
Article 23
Paragraphs 12 and 13 shall be added in the Article 61 to read as follows:
"In case that during the year circumstances are changed in such a manner as
not to compromise the established priorities within the budget, the Government, that
is, the relevant executive body of the local government, shall reach a decision to
transfer the amount of appropriation that can no longer be used to the current budget
reserve allowing that such amount may be used for purposes that have not been
envisaged in the budget or for the purposes for which insufficient funds have been
allocated only.
The total amount of reallocation from paragraph 12 of this Article cannot
exceed the amount of difference between the approved budget allocation for budget
reserve and the maximum amount of current budget reserve funds specified by this
Law.“
Article 24
In Article 65, paragraph 1, item 3 shall be amended to read as follows:
"3) Other revenues.“
Article 25
In Article 69, after paragraph 2, a new paragraph 3 shall be added to read as
follows:
"The current budget reserve shall be set at the 1.5% maximum of the total
revenues and proceeds from the sales of non-financial assets for the budget year.“
The former paragraphs 3 and 4 shall become paragraphs 4 and 5.
- 15 In former paragraph 5, which shall become paragraph 6, the wording:
"paragraphs 1 to 4“ shall be replaced by wording "paragraph 1 to 5“.
Article 26
In Article 70, paragraph 3, the percentage: "1.5 %“ shall be replaced with the
percentage of "0.5 %“, and after the word "revenues“ the following words shall be
added: "and proceeds from the sale of non-financial assets“.
Article 27
In Article 75, paragraph 4, the wording "annual report“ shall be replaced by
the wording "financial statements“.
Article 28
In Article 78, paragraph 1, the introductory sentence for item 1 and sub-items
1, 2 and 3 shall be amended to read as follows:
"The procedure of preparation, drafting and submission of financial
statements of the Republic of Serbia budget, local governments' budgets and the
budgets of the organizations for mandatory social insurance and of the annual
financial statements of the budget beneficiaries and beneficiaries of organizations for
mandatory social insurance funds shall be executed in accordance with the following
calendar schedule, and specifically:
1)
Calendar for the Republic of Serbia level:
(1) February 28 – the indirect beneficiaries of the Republic of Serbia budget
funds shall prepare the annual financial report for the previous budget year and they
shall submit it to the relevant direct beneficiaries of the Republic of Serbia budget
funds; the judiciary bodies that are presented aggregately in the Republic of Serbia
budget shall prepare the annual financial report for the previous budget year and
submit it to the High Judicial Council, that is, to the State Prosecutorial Council; the
beneficiaries of the Republic Institute for Medical Insurance funds shall prepare the
annual financial report for the previous budget year and submit it to the Republic
Institute for Medical Insurance;
(2) March 31 – the direct beneficiaries of the Republic of Serbia budget shall
prepare the annual report and submit it to the Treasury Administration, and the direct
beneficiaries of the Republic of Serbia budget funds responsible for the indirect
beneficiaries of the Republic of Serbia budget funds shall verify, reconcile data from
their annual reports on budget execution and prepare the consolidated annual report
on budget execution that shall be submitted to the Treasury Administration; the High
Judicial Council, that is, the State Prosecutorial Council, shall verify, reconcile data
from the annual reports on budget execution by the judiciary bodies that are
presented as the aggregate amount within their budget line and prepare consolidated
annual reports on budget execution, which shall be submitted to the Treasury
Administration;
(3) April 30 – organizations for mandatory social insurance shall adopt
decisions on financial statements of the organizations for mandatory social
insurance, adopt reports on financial plans' implementation and submit these to the
Treasury Administration; the Republic Institute for Medical Insurance shall verify,
reconcile data from the annual reports on financial plan implementation of the
beneficiaries within its jurisdiction, consolidate data and prepare the consolidated
annual report on financial plan implementation, which shall be submitted to the
Treasury Administration;“.
- 16 In item 2, the introductory sentence and sub-items 1 and 2 shall be amended
to read as follows:
"2) The Calendar of financial statements of the local governments' budgets:
(1) February 28 – the indirect beneficiaries of the local government budgets'
funds shall prepare the annual financial report for the previous budget year and
submit it to the relevant direct beneficiaries of the local governments' budget funds;
(2) March 31 – the direct beneficiaries of the local governments' budget
funds shall prepare the annual report and submit it to the local administration body in
charge of finances, and the direct beneficiaries of the local governments' budget
funds that are responsible for the indirect beneficiaries of local governments' budget
funds shall verify, reconcile data from their annual reports on budget execution and
prepare the consolidated annual report on budget execution, which shall be
submitted to the local administration body in charge of finances;“.
Article 29
Article 79 shall be amended to read as follows:
"Article 79
The financial statement shall contain the following:
1) The annual financial report on budget execution with additional notes,
explanations and justifications;
2) The annual financial report on plan implementation of the organizations for
mandatory social insurance, as well as the annual consolidated financial report of the
Republic Institute for Medical Insurance, with additional notes, explanations and
justifications;
3) An external audit report.
The annual financial reports from the paragraph 1 of this Article, which
constitute the financial statement of the Republic of Serbia budget, the financial
statement of the local governments' budgets and the financial statement of the
organizations for mandatory social insurance have to be prepared in accordance with
the budget content and categories, that is, with the content and categories from the
financing plan, and the financial result in such reports shall be determined in
accordance with the International Public Sector Accounting Standards – cash based.
The format and the content of the additional notes, explanations and
justifications, which shall be delivered attached to the annual financial reports from
the paragraph 1, items 1 and 2 of this Article, shall be defined in an act by the
Minister.“
Article 30
Article 79a shall be added to follow the Article 79 to read as follows:
"Article 79а
The Republic Directorate for the Republic of Serbia Property, which maintains
a unified register of immovable property and comprehensive records of the movable
property owned by the Republic of Serbia, shall be obliged to deliver to the Ministry
and its Treasury Administration no later than March 31 of the current year, their
report on the structure and value of the Republic of Serbia property, based on the
reports on the structure and value of the property of beneficiaries of funds owned by
the Republic of Serbia that were delivered to them, based on which they shall
- 17 prepare the financial statement of the Republic of Serbia budget for the previous
year.
The content of the Report from paragraph 1 of this Article shall be specified
by the Minister.“
Article 31
In Article 80, item 3, after the word "harmonization", the wording "and
coordination of financial management and control and internal audit" shall be added.
Article 32
Article 81 shall be amended to read as follows:
"Article 81
The beneficiaries of public funds shall introduce financial management and
control, which are to be implemented through policies, procedures and activities with
the task to provide reasonable assurance that their objectives will be achieved
through the following:
1) Business operations in accordance with the regulations, internal acts and
agreements;
2) Substantiality and integrity of financial and business reports;
3) Cost-effective, efficient and effective use of funds;
4) Protection of funds and data (information).
The financial management and control shall include the following elements:
1) Control environment;
2) Risk management;
3) Control activities;
4) Information and communications;
5) Monitoring and evaluation of the system.
The financial management and control shall be organized as a system of
procedures and responsibilities of all the persons within the organization.
Head of the public funds' beneficiary shall be responsible for introduction,
maintenance and regular updating of the financial management and control system.
The head of the public funds' beneficiary may assign the task of introduction,
maintenance and regular updating of the financial management and control system
to a person that they authorize for these tasks.
The manager from the paragraph 4 of this Article shall inform the Minister in
the manner specified by law no later than March 31 of the current year for the
previous year about adequacy and functioning of the financial management and
control system.
The Minister shall specify the universal criteria and standards for introduction,
functioning and reporting about the financial management and control system in the
public sector.“
Article 33
Article 82 shall be amended to read as follows:
- 18 "Article 82
Public funds beneficiaries shall introduce internal audit.
The Head of the public funds' beneficiary shall be responsible for establishing
and for providing the necessary conditions for adequate functioning of internal audit.
The internal audit shall be independent from the business activity that is being
audited in the organizational sense, and it shall not be a part of any operational
process, that is, of any organizational part of the organization, and it shall be directly
accountable for its work to the Head of the public funds' beneficiary.
The functional independence of the internal audit shall be provided for by
means of independent decision making process in relation to the following: audit area
based on risk assessment, audit method and reporting on the audit performed.
Based on an objective review of evidence, the internal audit shall provide a
verification of adequacy and functioning of the existing risk management processes,
control and organizational management of whether such processes function in the
envisaged manner and enable that the organization's objectives are achieved.
Internal audit shall provide advisory services consisting of advice, guidelines,
training, assistance or other services with the aim to increase the value and to
improve the management process in the organization in question and risk
management and control.
Internal audit shall be performed by internal auditors.
The internal auditors shall apply the international standards of internal audit,
ethics code of internal audit and the principles of objectiveness, competence and
integrity to perform their function.
The internal auditors shall be obliged to keep the secret of official and
business information.
The Head from paragraph 1 of this Article shall inform the Minister about the
functioning of the internal audit system in the prescribed manner by March 31 of the
current year for the previous year.
The Minister shall prescribe common criteria for organization and standards
and methodology instructions for activities and reporting of internal audit, and he/she
shall define in more details the internal audit activities in public sector."
Article 34
Article 83 shall be amended to read as follows:
"Article 83
The harmonization of financial management and control and internal auditing
shall be performed by the Ministry – Central Harmonization Unit.
The Central Harmonization Unit shall perform the following tasks:
1) Central harmonization, coordination, monitoring of implementation and
assessment summary of the quality of financial management and control and internal
auditing in public sector;
2) Defining shared criteria and standards for establishing and functioning of
financial management and control system;
3) Defining shared criteria for organization and activities of internal audit in
the public sector;
- 19 4) Maintenance of register of authorized internal auditors in the public sector
and maintenance of records on internal audit charter;
5) Professional training courses, certification and monitoring of internal
auditors' work;
6) Professional training courses for managers and employees in the public
sector in the area of financial management and control, in accordance with the
internationally accepted standards;
7) Consolidation of annual reports from the Article 81, paragraph 5 and from
the Article 82, paragraph 10 of this Law on the state of financial management and
control and internal audit.
The Minister shall deliver to the Government the consolidated Annual Report
from paragraph 2, item 7 of this Article.
The employees performing the tasks of the Central Harmonization Unit are
obliged to maintain confidentiality of official and commercial information.
The Minister shall prescribe the program of professional training and
conditions and procedure for certification, that is, for the exam system for acquiring
professional title of certified internal auditor in the public sector, professional training
and proficiency courses, as well as the guidelines and rulebooks for tasks from the
paragraph 2 of this Article.“
Article 35
Following Article 92, a new Section VIIIА containing Articles 92а to 92w and
titles above these Articles shall be added to read as follows:
"VIIIа THE FISCAL COUNCIL
The Fiscal Council
Article 92a
This Law shall regulate the introduction of the Fiscal Council.
The Fiscal Council is an independent state body.
For the performance of tasks specified in its mandate, the Fiscal Council shall
be accountable to the National Assembly.
The Fiscal Council shall be a legal entity.
The Fiscal Council shall have its seal according to law.
The seat of the Fiscal Council shall be in Belgrade.
The Fiscal Council shall have three members that shall be elected by the
National Assembly.
Expert services of the Fiscal Council shall be established to perform expert
and administration tasks.
Article 92b
Members of the Fiscal Council shall be proposed by the following:
1) President of the Republic shall nominate the Chairperson of the Fiscal
Council;
2) The Minister shall nominate one member;
- 20 3) The Governor of the National Bank of Serbia shall nominate one member.
In case that the National Assembly fails to elect the proposed member, the
election procedure for that member shall be repeated.
The Fiscal Council shall be operational only when all the three member of the
Fiscal Council are elected.
After the election, the Fiscal Council members shall take an oath before the
National Assembly, whereby they shall assume their office. The oath shall read as
follows: "I swear that I shall be loyal to the Republic of Serbia. I promise to abide by
the Constitution and the laws. I swear by my honour that I shall perform my duties
independently, fair and bearing in mind the prosperity of present and future
generations".
Article 92c
A person who is the citizen of the Republic of Serbia, who does not perform
any public function, who has no criminal record and who meets the following criteria
can be elected the Fiscal Council member:
1) to hold the relevant MA, Master or doctoral degree in the field of economic
sciences, to have published scientific research papers in the fields of
macroeconomics, fiscal policies, public finances, accounting or some other relevant
scientific field, and a minimum of five years of working experience;
2) In addition to the conditions from the item 1 of this paragraph, the
candidate for the Fiscal Council Chairperson should have a minimum of five years of
practical experience in managerial jobs.
A member of the Fiscal Council shall not be allowed to perform any other task
or paid job, except for the scientific, educational, artistic, literary and advisory,
editorial or some other and similar intellectual work, in accordance with the law.
A member of the Fiscal Council cannot be a member of a political party and
they must not be guided by their own political agenda in their work.
Article 92d
The Fiscal Council members shall be elected for the period of six years, and
the membership in the Fiscal Council can be terminated before the end of their
mandate in the following cases:
1) If they take a public office;
2) If they are eligible for retirement;
3) If they submit resignation;
4) If they are sentenced to unconditional final prison sentence longer than six
months;
5) If they are debarred or suspended with a final court decision;
6) If they are subject to loss of citizenship;
7) In the case of death;
8) By deprivation of office.
The National Assembly may deprive a member of the Fiscal Council of his/her
office it the following fact of facts have been established:
- 21 1) That the Fiscal Council member is no longer capable of performing their
duties due to the mental or physical medical condition, which shall be determined
based on the documentation by the relevant medical institution;
2) That the Fiscal Council member failed to act in accordance with the
Constitution and the law.
Article 92e
The Fiscal Council shall immediately inform the National Assembly about the
reasons for termination or deprivation of office for its member.
The initiative for removal from office of a Fiscal Council member can be
submitted by a minimum of 20 National Assembly deputies.
The initiative shall be submitted in writing, together with the particulars and
evidence of reasons from the Article 92d of this Law.
The initiative shall be considered by the relevant working body of the National
Assembly.
The Fiscal Council member the deprivation of office of whom has been
proposed, shall be entitled to address the members of the relevant working body of
the National Assembly in writing or in person, in the meeting in which the initiative on
his/her deprivation of office shall be discussed.
After having discussed and voted on the initiative, the relevant working body
of the National Assembly shall submit to the National Assembly a report containing
proposal that the National Assembly should reach a decision to deprive the Fiscal
Council member in question of office or to dismiss the said initiative.
The office and related rights of the Fiscal Council member shall be terminated
on the date of adoption of decision on deprivation of office in the National Assembly
sitting.
Article 92f
The relevant working body of the National Assembly shall be entitled to
recommend to the National Assembly on their own initiative that a Fiscal Council
member be deprived of office in cases where, based on a continuous monitoring of
Fiscal Council work according to law or base on some other information, reasons for
deprivation of office from Arricle 92d of this Law have been found.
In case of the procedure where the relevant working body of the National
Assembly proposes that a Fiscal Council member be deprived of office on their own
initiative, provisions of the Article 92e, paragraph 5 of this Law shall be applied.
Tasks and Responsibilities of the Fiscal Council
Article 92g
The Fiscal Council shall:
1) Verify macroeconomic and fiscal presumptions used for preparation of
Fiscal Strategy Report by the Government;
2) Provide independent and credible assessment of economic policy
measures that were proposed by the Government with the aim to achieve
quantitative fiscal targets that were set by the Government;
3) Assess basic fiscal risks and probability levels of Government's
achievement of its fiscal targets in the future;
- 22 4) Assess the measure to which the Government abided by its own fiscal
rules in the past;
5) Assess the need to activate any of the regulations for special
circumstances and the probability with which the Government harmonization plan will
facilitate abiding by the fiscal rules;
6) Test the adequacy of economic classifications, including the regular
classification of capital expenditures, in order to provide for the adequate measuring
of quantitative fiscal targets.
Article 92h
The Fiscal Council shall perform the following tasks:
1)
Prepare their opinion about the draft Fiscal Strategy Report;
2)
Prepare and deliver to the National Assembly the analysis of:
- The revised Fiscal Strategy Report of the Government for the fiscal year in
question;
- draft law on the Republic of Serbia budget, which includes proposed budget
revision, as well as draft law on amendments and addenda submitted during the
National Assembly debate;
3) Prepare and submit to the National Assembly the analysis of draft law on
financial statements of the Republic of Serbia budget and consolidated balance sheet
of the state general level budget;
4) Prepare and deliver to the National Assembly assessments on fiscal
impacts from other draft laws, as well as on amendments submitted during the
discussion in the National Assembly.
The Fiscal Council shall submit the analyses from the paragraph 1, item 2 of
this Article to the National Assembly within 15 days from the submission date of the
revised Fiscal Strategy Report by the Government to the National Assembly, that is
within 15 days from the submission date of draft Law on Republic of Serbia Budget or
draft Budget Revision.
Article 92i
The Fiscal Council may, at any time, on its own initiative or upon request,
provide advice to the Government on issues of fiscal policy and management of
public finances.
All the analyses, reports, recommendations and advice prepared by the Fiscal
Council shall be made publicly available within five working days from the date of its
delivery to the Minister, Government or the National Assembly.
The reports, analyses and estimates of the Fiscal Council shall be made
available to the general public on the Fiscal Council Internet page.
The reports, analyses and estimates of the Fiscal Council shall be published
in the Official Gazette of the Republic of Serbia if necessary, as well as on the
Internet presentation of the National Assembly, Government, Ministry of Finances, or
relevant local government unit.
- 23 Obligation to Supply Requested Information to Fiscal Council
Members
Article 92j
The Fiscal Council shall be authorized to request the Ministers to deliver
relevant economic and fiscal forecasts and analyses to them, which may be
necessary to the Fiscal Council members to perform their tasks and responsibilities
pursuant to this Law.
Additionally, the Fiscal Council may request from the Minister to prepare and
deliver to the Fiscal Council members the fiscal projections based on alternative
presumptions and scenarios.
The Fiscal Council shall be authorized to request that information be
submitted to them by all the public sector actors, including the public companies,
providing that such information is considered to be of the essence for the work of
Fiscal Council.
In case that the requested information of the essence for the work of Fiscal
Council is not provided, the Fiscal Council Chairperson shall inform the National
Assembly about such outcome.
Organization and Membership
Article 92k
The Chairperson of the Fiscal Council shall:
1) Preside over the work of the Fiscal Council;
2) Call meetings of the Fiscal Council members and specify the agenda for
such meetings;
3) Represent the Fiscal Council;
4) Approve publishing of opinions and assessments of draft laws;
5) Manages the Fiscal Council as a state body;
6) Be accountable to the National Assembly for the quality and reliability of
assessments prepared by the Fiscal Council.
The Chairperson of the Fiscal Council shall adopt the Rules of Operations
that will specify the manner and procedure in accordance to which the Fiscal Council
performs their tasks, decision making and other issues regulated by this law that are
of significance for the work of the Fiscal Council, with prior approval by the relevant
working body of the National Assembly.
Article 92l
The Fiscal Council shall have its expert service with special advisors and an
auxiliary service.
The managers of the services from the paragraph 1 of this Article shall be
nominated by the Chairperson of the Fiscal Council for the period of six years.
The manner of performance of tasks, organizational structure of the services
and the systematization of jobs shall be defined with a legal act of the Fiscal Council,
with the prior approval by the relevant committee of the National Assembly.
- 24 Article 92m
Expert service and its special advisors shall be managed by the supreme
special advisor.
Person that is a citizen of the Republic of Serbia, that meets the general
conditions for employment in state administration, that has a PhD degree in the field
of economics, that has published works in the field of macroeconomics, fiscal policy,
public finances, accounting or some other related field and that has a minimum of
five years of working experience can be appointed for the supreme special advisor.
Article 92n
Duties of the special advisor shall be discharged by a person that is the
citizen of the Republic of Serbia; that is not a public officer; that does not have a
criminal record and that has the following:
1) Relevant university degree from the field of economy, finances, accounting
or some other relevant field;
2) Excellent theoretical knowledge and practical skills about the budget and
financial issues;
3) A minimum of five years of work experience in the field of economy,
finances, accounting or in some other relevant field.
The special advisor must not perform other paid jobs, except for the scientific,
educational, artistic, literary and advisory, editorial or some other work in accordance
with the law.
Article 92o
Fiscal Council shall be entitled to engage external experts, for certain tasks
within their mandate.
The external expert has to possess adequate expert knowledge and work
experience.
The external expert may be a physical or a legal entity.
A foreign citizen may also be engaged as the external expert, who is a
recognized expert in the areas of importance for the execution of tasks from the
mandate of the fiscal advisor.
The entire working documentation, prepared by the external expert, shall be
made available and shall belong to the Fiscal Council.
Article 92p
The auxiliary service shall be managed by the secretary.
A person that fulfils the general conditions for employment in state
administration, that has the university degree in law or in economy, that has passed
the state exam and that has at least nine years of working experience in the relevant
profession can be appointed secretary.
Equal Position
Article 92q
The Fiscal Council Chairperson shall be entitled to the basic salary amounting
to the basic salary of the special advisor, and increased by 30 percents.
- 25 Fiscal Council members shall be entitled to the basic salary amounting to 90
percents of the basic salary of the Fiscal Council Chairperson.
As for the other rights, duties and responsibilities of the Fiscal Council
members, provisions of legal acts regulating the rights of elected persons shall be
applied accordingly.
Article 92r
The supreme special advisor shall be entitled to the basic salary amounting to
the 90 percents of the salary that is determined for the Fiscal Council members.
As for the other incomes and rights of the supreme special advisor, provisions
of legal acts regulating such rights of the civil servants shall be applied, unless
otherwise prescribed by this Law.
Article 92s
Fiscal Council Secretary shall be entitled to the basic salary that is equal to
the amount of the salary of the State Secretaries in Ministries.
As for the other incomes and rights of the secretary, provisions of the law
regulating such rights of civil servants shall be applied, unless otherwise prescribed
by this Law.
Article 92t
The number of special advisors shall be determined by the official document
passed by the Fiscal Council, with the previous agreement from the part of the
relevant working body of the National Assembly.
Special advisor may be a full-time employee or a part-time employee.
The special advisor shall be entitled to the basic salary that shall be
calculated by multiplying the salary and its basis by the coefficient to which the first
category civil servants are entitled, or 9.00.
The salary calculation and payment basis from the paragraph 5 of this Article
shall be specified by the law regulating the salaries of civil servants and public sector
employees.
Article 92u
Persons working in the Financial Council services shall be of equal ranking
with any other state administration executive or officer, unless otherwise prescribed
by this Law.
Decision on employment and termination of employment in the Fiscal Council
shall be reached by the Fiscal Council Chairperson.
The decision from the paragraph 2 of this Article shall be final.
Persons working in the Fiscal Council services, except for the special
advisors, shall be entitled to salary, which shall be equal to the salary prescribed by
the regulations specifying the salaries of state officials and public sector employees.
Article 92v
The basic salary determined by the Article 92q, paragraphs 1 and 2, Article
92r, paragraph 1 and Article 92s, paragraph 3 may, due to some special complexities
of the work of the Fiscal Council, be increased for a bonus that shall by no means be
higher than 30 percents thereof.
- 26 Bonus criteria and amount shall be specified by the Chairperson of the Fiscal
Council.
Fiscal Council Assets
Article 92w
Assets necessary for the work of Fiscal Council and their expert services shall
be provided in the Republic of Serbia Budget.
Fiscal Council members shall prepare the draft Financial Council financial
plan upon proposal from the secretary and shall deliver it to the relevant working
body of the National Assembly for their approval.
Upon approval from the relevant National Assembly working body, the Fiscal
Council shall deliver the draft financial plan to the Ministry.
Business premises, equipment and resources necessary for the work of the
Fiscal Council shall be provided by the Government.
Fiscal Council financial operations’ audit shall be carried out by the State
Auditing Institution.“
Article 36
In Article 93, items 1, 2 and 3 shall be amended to read as follows:
"1) Financial planning, which includes:
(1) Projections of inflow and outflow of the Republic of Serbia budget during
the budget year on quarterly, monthly and daily levels;
(2) Defining payment limits;
(3) Projections of necessary amounts of money on quarterly and monthly
levels for deficit financing and repayment of debts and planning to maintain an
adequate liquidity level during the budget year;
2)
Managing financial assets of the Republic of Serbia, which includes:
(1) Liquidity management through management of monetary assets in the
consolidated treasury account of the Republic of Serbia and foreign currency assets
of the Republic of Serbia;
(2) Budget execution and drafting of periodical reports on budget execution;
(3) Placement of available monetary assets;
(4) Reduction of exposure to financial risks by using financial derivatives;
(5) Development of procedures for receivables' collection through the banking
system;
(6) Management of other financial assets (shares, bonds, receivables, etc.)
and financial derivatives;
3) Expenditure control, including the approvals of payments not exceeding the
specified appropriations;“.
Item 6 shall be amended to read as follows:
"6) Establishing and maintenance of information system for managing public
finances of the Republic of Serbia, that is, of the local government and management
of that system;“.
- 27 Article 37
Paragraph 5 in Article 100 shall be deleted
Article 38
In Article 103, item 2, the words "41, Article 42, paragraph 6 and Article 50“
shall be replaced by "41 and Article 42, paragraph 6.“
In item 6, the words "Articles 74 to 79“ shall be replaced by the words
"Articles 74 to 79а“.
Article 39
Paragraph 2 shall be added in the Article 110 to read as follows:
"The beneficiaries from the paragraph 1 of this Article, by the deadline
established by the act of the Minister, shall maintain their accounting records and
shall draft the prescribed financial reports, and the transactions and business
dealings shall not be entered in the Treasury General Ledger.“
Article 40
Paragraph 2 in the Article 112 shall be deleted.
Article 41
In Articles 30, 32, 35, 36, 37, 38, 39, 40, 42, 45 and 109 and in the title above
the Article 45, the word "Memorandum" in the relevant noun case shall be replaced
by the following wording: "Fiscal Strategy Report" in the relevant noun case of that
phrase.
Article 42
The nominators shall propose the members of the Fiscal Council to the
National Assembly within 60 days from the date of this Law coming into force.
The Chairperson of the Fiscal Council shall adopt the Rules on their work
within 30 days from the date of calling of the first Council meeting.
The Government shall be obliged to provide the conditions for the work of
Fiscal Council within 60 days from the date of election of the Chairperson and
members of the Fiscal Council.
Article 43
Provisions of the Article 2, paragraph 1, item 3, in its part pertaining to the
Fiscal Strategy Report (the new items 25j and 25l), paragraphs 5 and 7, of the Article
4, Article 15, in the part that pertains to the Fiscal Strategy Report (the new Articles
27c, 27d, 27e, 27f and 27j) and Articles 16, 17, 18, 28, 40 and 41 of this Law shall be
applied as of January 1, 2011.
The provisions of the Article 29 of this Law shall be applied as of January 1,
2012.
Provisions of this Law that regulate the scope of jurisdiction of the Fiscal
Council in the part that pertains to the Fiscal Strategy Report, Budget and financial
statement drafting and preparations, as well as to the drafting and delivery of
opinions, analyses, assessments and other documents to the relevant bodies shall
be applied as of January 1, 2011.
- 28 The by-law from the Article 30 of this Law shall be passed within 60 days from
the date when this Law came into force, the by-laws from Articles 4, 5, 32, 33 and 34
of this Law shall be passed within six months from the date when this Law came into
force, and the by-law from the Article 29 of this Law shall be passed by December
31, 2011.
Article 44
The provisions of regulations and other general acts that came into force
before coming into force of this Law, in its part that pertains to the Memorandum on
Budget and economic and fiscal policy, shall be accordingly applied on the Fiscal
Strategy Report as of January 1, 2011, except in cases where these are contrary to
this Law.
Article 45
This Law shall come into force on the following day from the date of its
publishing in the Official Gazette of the Republic of Serbia.