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Government of the Republic of Serbia
Memorandum on the Budget and Economic
and Fiscal Policy for 2011, with Projections
for 2012 and 2013
August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Important Disclaimer
This translation has been provided by the „Jugoslovenski pregled“ Publishing House.
This does not constitute an official translation and the Ministry of Finance cannot be held
responsible for any inaccuracy or omission in the translation.
Odricanje od odgovornosti
Ovaj prevod je urađen od strane izdavačke kuće „Jugoslovenski pregled“. Ovo nije zvaničan
prevod i Ministarstvo finansija ne snosi odgovornost za bilo kakvu netačnost ili propust u
prevodu.
1
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Table of contents
I MACROECONOMIC FRAMEWORK FOR THE PERIOD 2011-2013 .......................................................... 4
1. Current Macroeconomic Trends ..................................................................................................... 4
1.1 Economic Trends in 2009 .......................................................................................................... 4
1.2. Economic Trends and Outlooks for 2010 ................................................................................. 7
2. Macroeconomic forecasts for the period 2011-2013 ................................................................... 10
2.1. Estimate of the main economic indicators in international environment............................. 10
2.2. Forecast of the main economic indicators for the Republic of Serbia................................... 13
3. Economic Policy Objectives and Guidelines in the Period 2011-2013.......................................... 18
II FISCAL FRAMEWORK FOR THE PERIOD 2011-2013 ........................................................................... 23
1. Fiscal Trends in 2009 and 2010 ..................................................................................................... 23
1.1. Fiscal Trends in 2009 .............................................................................................................. 23
1.2. Fiscal Trends and Outlooks for 2010...................................................................................... 27
2. Fiscal Framework for the Period 2011-2013................................................................................. 29
2.1. Fiscal Forecasts in the Period 2011 - 2013............................................................................. 29
2.2. Expenditure limits for budget beneficiaries in the period 2011-2013................................... 33
2.3. Tax and Customs’ System ...................................................................................................... 37
2.4. Improvement of Public Finance Management ........................................................................ 1
2.5. Fiscal Risks .............................................................................................................................. 40
III PUBLIC DEBT MANAGEMENT STRATEGY OF THE REPUBLIC OF SERBIA IN THE PERIOD 2011 TO
2013 ...................................................................................................................................................... 43
1. Structure of Serbia's Public Debt .................................................................................................. 43
2. The objectives of borrowing and public debt management......................................................... 45
3. The main guidelines ...................................................................................................................... 45
3.1. Cautious and prudent debt management ............................................................................. 45
3.2. Transparent and predictable borrowing and debt management .......................................... 48
3.3. Development of efficient infrastructure for the local capital market ................................... 49
4. Expected results of the public debt management strategy.......................................................... 49
IV STRUCTURAL REFORMS IN THE PERIOD 2011-2013 ......................................................................... 51
1. General guidelines for the real, financial and general government sector reform ...................... 51
1.1. Real Sector ............................................................................................................................. 51
2
1.2. Financial Sector ...................................................................................................................... 56
1.3. General Government ............................................................................................................. 60
2. Sector reform guidelines ............................................................................................................... 62
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
2.1. Labor market .......................................................................................................................... 62
2.2. Commercial Activities ............................................................................................................ 63
2.3. Social Activities....................................................................................................................... 66
2.4. The Pension System ............................................................................................................... 69
2.5. Health ..................................................................................................................................... 69
2.6. System of Social Protection ................................................................................................... 70
2.7. Administrative Reforms ......................................................................................................... 70
2.8. Other Reforms........................................................................................................................ 72
V FINAL PROVISIONS ............................................................................................................................. 74
3
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Pursuant to Article 31, paragraph 1, item 1) sub-point (5) of the Budget System Law
("Official Gazette of the Republic of Serbia", No.54/09),
The Government adopts
THE MEMORANDUM
ON THE BUDGET AND ECONOMIC AND FISCAL POLICY
FOR 2011, WITH PROJECTIONS FOR 2012 AND 2013
I MACROECONOMIC FRAMEWORK FOR THE PERIOD 2011-2013
1. Current Macroeconomic Trends
1.1 Economic Trends in 2009
The break point of economic trends in Serbia started in the second half of 2008 with the
spill-over of negative effects of the global financial and economic crisis onto the Serbian economy
and finance. The crisis, after the high rates of economic growth in the 2001-2008 period, caused
economic activity and foreign trade to slow down and drop as a consequence of lowered foreign and
domestic demand and reduction of foreign capital inflow due to investors’ caution and worsened
conditions in the global financial markets. The following table shows the declining trends in the
Serbian economy formed in the period of economic crisis.
Table 1. The main economic indicators at the time of economic crisis, in %
2008
2007
4
Q4 2008
Q4 2007
Q1 2009
Q1 2008
Q2 2009
Q2 2008
Q3 2009
Q3 2008
Q4 2009
Q4 2008
2009
2008
GDP, real
Industrial production, physical
volume
5,5
2,9
-4,1
-4,2
-2,3
-1,6
-3,0
1,1
-5,1
-17,0
-17,8
-10,6
-3,8
-12,1
Retail trade, real sales
6,6
2,0
-14,1
-13,0
-15,1
-17,2
-12,4
Tourist overnight stays
0,1
-1,6
-6,1
-5,3
-2,3
-19,9
-7,8
Value of construction works,
constant prices
4,3
-2,0
-21,4
-24,0
-27,5
-28,3
-23,5
Transport, volume of services
Postal activity and
telecommunications, volume of
services
0,4
-4,8
-12,5
-16,8
-18,0
-10,1
-14,7
39,0
20,6
21,2
32,1
34,1
26,4
28,5
Export of goods in EUR, c.i.f.
15,5
2,1
-23,8*
-22,2*
-24,2*
-7,8*
-19,8*
Import of goods in EUR, c.i.f.
Average number of employees with
legal entities
Actively unemployed persons, end
of period
14,7
-4,0
-24,1*
-36,8*
-36,0*
-22,1*
-30,2*
-0,3
0,2
-0,5
-1,9
-2,6
-3,4
-2,2
-7,3
-7,3
-4,6
0,9
1,5
0,4
0,4
Real average net wage, total
3,9
4,5
2,4
1,9
0,1
-0,2
0,2
Real average net wage, public sector
1,4
2,8
-0,9
-1,9
-3,7
-5,8
-4,0
*Extended coverage - according to the new methodology of NSO
Source: NSO, NBS, NES
In 2008 significant real growth of gross domestic product (GDP) amounting to 5.5% was
generated, while due to the impact of the global economic crisis the economic growth was slowed
down in the third (4.6%) and fourth (2.9%) quarter, compared to the first (8.8%) and second (6.3%)
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
quarter. After three years of stable growth, industrial production marked a declining tendency in the
period August-December (-3.2%) and in Q4 of 2008 (-5.1%). In Q4 of 2008, there was a 2% real yearon-year growth in retail sales, while the number of tourist overnight stays dropped by 1.6%. As of
October 2008 the trend of foreign trade was also shifted to reflect a growth slow-down, and then
drop of export and import of goods, after their three-year growth at high rates. In Q4 of 2008 the
export of goods was increased by 2.1% while import of goods was reduced by 4.0%, compared to Q4
of 2007. Higher growth of import than export of goods in 2008 influenced the high foreign trade
deficit (EUR 9.0 billion) and low coverage of import by export of goods (45.1%). Reduction of
monthly values of industrial production, retail sales, export and import in the second half of 2008
resulted in their cumulative growth reduction in 2008 to 1.1%, 6.6%, 15.5% and 14.7%, respectively.
The declining tendencies in the Serbian economy from the second half of 2008 were
deepened in the first half of 2009. The major year-on-year GDP decrease was marked in Q1 and Q2
of 2009. Industrial production, export and import of goods also marked a huge drop in Q1 and Q2. In
the second half of 2009 economic situation stabilized and economy slightly recovered. GDP had a
lower drop in Q3 and Q4 of 2009, which provided for 2009 GDP drop in Serbia to be 3.0%, which is
lower than the rate in many countries in the region and in Europe. Most industries marked a drop in
activities, except the telecommunications, financial intermediation and agriculture. In the area of
tourism in 2009 there was a 7.8% drop in the number of tourist overnight stays, while there was a
3% increase of foreign tourist arrivals. The major drop of activities in 2009 was registered in civil
engineering, transportation, retail sales and industry. Industrial production marked a lower drop in
the second half of the year (7.2%) than in the first half (17.4%) of 2009.
In 2009 there was a significant reduction in foreign trade compared to the previous year.
Export of goods dropped by 19.8% and import of goods by 30.2%. Note that the export of goods
marked a lower drop in the second half of the year (16.7%) than in the first half (22.9%). Due to
recession a significant share of foreign trade deficit and current account deficit in GDP was
registered - 16.6% and 7.4%, respectively. Due to a faster drop of import than export in 2009, foreign
trade deficit was reduced to EUR 5.1 billion (f.o.b.) at year end. Lower foreign trade deficit and
increased volume of registered remittances (EUR 2.7 billion) enabled the current account deficit
reduction to EUR 2.3 billion at the end of 2009 that was financed by net inflow of foreign direct
investments amounting to EUR 1.4 billion and net inflow of financial loans amounting to EUR 1.2
billion, including the IMF credit line.
Economic activity and foreign trade were drastically reduced in the first half of 2009 due to a
major drop in domestic and export demand, drop in credit activity and increased insolvency of
companies due to the global economic crisis. The implemented measures of economic and monetary
policy generated more favorable results in the second half of 2009, which was positively reflected in
the results on an annual level, primarily on moderate GDP drop of 3%. The measures for boosting
the economy and domestic consumption provided a special contribution. Thanks to the subsidized
interest rates from the State budget in 2009, the banks approved EUR 860 million in liquidity loans
and EUR 140 million in consumer loans.
Contributing to the slight recovery of economic activities in the second half of 2009 was a
real growth in total bank loans of 5.3%, loans to companies of 5.7% and retail loans of 4.5% in that
period, as well as in the first half of 2009 when a lower rate of real growth in total bank loans was
generated, amounting to 3.2%, where loans to companies were increased by 6.6% and retail loans
decreased by 2.9%. Also, the year-on-year real growth of total bank loans, denominated in Euro, was
slowed down from 30.2% in September 2008 (before the stronger impact of the global crisis) to
21.6% in December 2008 and to 5.1% in September 2009, only to rise to 8.8% in December 2009.
Bank credit activity was primarily financed from the growing foreign currency savings deposits of
citizens and by using long term foreign loans. In 2009 liquidity loans dominated the newly approved
loans due to the current insolvency, and the share of non-performing loans in total loans in 2009,
| August 2010
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
net, was increased from 5.8% at year start to the mid-year 9.8% and decreased to 8.6% at year end
thanks to non-performing loans’ reprogramming.
The 2009 recession of Serbian economy was accompanied by unfavorable trends in the labor
market. Employment and real wages adjusted to the economic activity trends. According to the data
provided by NSO, the number of formally employed persons decreased to 5.5% year-on-year, while
the Workforce Survey reports that the number of employees from October 2008 to October 2009
decreased by 8.3%. The unemployment rate, according to the October 2009 Workforce Survey
increased to 16.6%. Real wages remained at approximately the same level as previous year. Real
growth of total average net wage amounted to 0.2%, while average net wages in the public sector
were reduced by 4%, real.
Economic recession and reduction of import resulted in a decreased volume of public
revenues and increased fiscal deficit in 2009. Public revenues were decreased by 7.5%, real, while
public expenditures by 3.6% in 2009, compared to the previous year. Consolidated deficit of the
general government in 2009 amounted to RSD 121.4 billion (4.2% GDP), which is lower than the
target fiscal deficit (4.5% GDP).
Inflation measured by consumer prices in 2009 was 6.6%, which is lower compared to 2008
(8.6%) primarily due to lower aggregate demand. After the rise of consumer prices in the first (3.8%)
and second (3%) quarter, the third quarter was marked by deflation (-0.7%) and slight inflation in the
fourth quarter of 0.3%. The 2009 inflation was mostly influenced by rise of administratively
controlled prices (15.5%), particularly the rise of oil derivatives’ prices by 45.9%.
The Dinar nominally depreciated against the Euro in 2009 by 7.6%, and in the first two
months only by 5.5%. The Dinar exchange rate was stabilized thanks to the increase of foreign
currency savings and foreign currency deposits under conditions of global economic crisis. In the
crisis year of 2009 Serbia increased foreign currency reserves of NBS by EUR 2.4 billion, which
amounted to EUR 10.6 billion at year end, after having reduced them in the period October 2008 to
March 2009 by EUR 1.2 billion. In 2009 foreign currency savings were increased by EUR 1.2 billion
and amounted to EUR 6 billion at year end, after its reduction by about one billion Euro in Q4 of
2009 as a consequence of the global financial crisis.
The Government and NBS responded to the challenges of the economic crisis by a
comprehensive program of measures with the IMF credit support and managed to maintain
macroeconomic and financial stability. The key role was that of fiscal policy and its measures that
contributed to a reduction of public spending volume and ensured regular payment of current
expenditures and implementation of national infrastructural projects, in particular the Corridor 10.
The economic and monetary policy contributed to alleviating the consequences of the global
financial and economic crisis, stabilization of economic situation and recovery of economy in the
second half of 2009.
6
The Government and NBS took measures to raise the financial system liquidity that was
jeopardized by the first wave of the global financial crisis that hit Serbia in October 2008 when
foreign currency savings in Q4 of 2008 drained suddenly and when total foreign currency reserves
were reduced due to the Dinar exchange rate volatility between October 2008 and February 2009.
The most significant measures for financial stability included increasing the guaranteed level for
savings deposits to EUR 50,000, temporary exemption from tax on capital income arising from
foreign currency savings and other retail deposits in 2009, and tax on capital gains from revenue
generated by transfer of securities and share in property of legal entities, as well as invalidating tax
on inheritance and gift, and tax on transfer of absolute rights of transfer of securities.
As of March 2009 the Government carried out Serbia’s Economic Stability Plan with a set of
anti-crisis measures focused on liquidity of companies and level of employment. The set of
incentives for companies included subsidized liquidity loans for companies, subsidized consumer
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
loans for buying locally produced durable consumer goods, subsidized loans for investments,
favorable loans to small and medium enterprises from foreign credit lines and subsidized residential
loans.
In April, as proposed by Government, the National Parliament adopted Law changing and
amending the Budget Law of the Country for 2009 with accompanying regulations the enforcement
of which for the first time ever ensured a more significant reduction in public spending. The set of
fiscal measures for reducing public spending included measures on the revenue side and on the
expenditure side.
The Executive Board of the IMF approved a credit stand-by arrangement to Serbia on May
15th, 2009, thus ensuring financial support to Serbia amounting to EUR 2.9 billion in 2009 and 2010.
The arrangement with the IMF provided for an agreement between Serbia and the major banks
operating in the country with the majority foreign ownership to keep the total level of exposure to
Serbia, as regulated by Vienna Initiative. Also, the credit arrangement with the IMF ensured
additional support to the Government by international financial organizations (SC, EBRD, etc.) and
the EU, including bilateral financial support to the Country’s budget and infrastructural projects.
1.2. Economic Trends and Outlooks for 2010
Serbia’s economic program was successfully implemented in the period January-May 2010.
The recovery of economic and foreign trade activities that started in the second half of 2009
continued. Industrial production marked an year-on-year growth of physical volume, especially in
export-oriented branches. Exports of goods mark a significant year-on-year growth, and imports of
goods a slight year-on-year growth. The trend of inflation continued within the target limits and
inflationary expectations continued to decrease. The Dinar exchange rate marked a heavier
depreciation in January, February and May 2010. Foreign currency savings and foreign currency
reserves were increased.
7
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Table 2. The main economic indicators in the period January-May 2010
Industrial production, physical volume
Retail trade, real sales
Tourist overnight stays
Consumer prices
Export of goods in EUR
Import of goods in EUR
Total bank loans expressed in EUR, real
Loans to companies expressed in EUR, real
Retail loans expressed in EUR, real
Total average net salary, real
Number of employees with legal entities, period average
Actively unemployed persons, end of period
Foreign trade deficit, c.i.f.
Current account deficit, excluding grants
Net inflow of foreign direct investments
NBS FX reserves, end of period
Foreign currency savings, end of period
Growth rates (I-V 2009 = 100)
5,4
-7,2
-18,0
4,3
18,1
1,6
10,8
11,4
9,4
2,4
-3,6
-0,6
In EUR million
-2.086,7
-1.123,0
393,6
10.730,9
6.309,4
Source: NSO, NBS, NES
After recession in Q1, Q2, Q3 and Q4 of 2009, Serbian economy marked a slight year-on-year
growth of 0.6% in Q1 of 2010.By activities, in Q1 the largest growth of gross value added was
marked in the following industries: transportation (8.6%), financial intermediation (6.3%), extraction
of ore and rock (4.0%) and processing industry (2.0%). A drop of GVA was marked in the hotel and
restaurants industry (14.1%), civil engineering (12.0%), trade (6.8%), electricity generation, gas and
water production (4.1%) and other services (0.2%). The major contributors to the GDP growth rate of
0.6% in Q1 are the following industries: transportation, financial intermediation and processing
industry. The following industries affected the GDP growth rate: trade, civil engineering, electricity
generation, gas and water production, and the hotel and restaurants industry. According to the
deseasonalized data series of the quarterly GDP calculation, in constant prices from 2002, a GDP
growth was generated in Q1 of 2010 in respect of Q4 of 2009 of 0.8%.
By industries, in the period January-May 2010, physical volume of industrial production
increased by 5.4%, processing industry by 5.9%, while real retail sales and tourist overnight stays
decrease year-on-year. In Q1 of 2010 physical volume of transportation increased by 5.9%, while the
value of construction works suffered a real decrease by 21.2%, compared to the same period 2009.
In the area of foreign trade in the first five months of 2010, export and import of goods
(values expressed in Euro) increased year-on-year. The coverage of import by export in the first five
months was 56.1%. At the end of May 2010 foreign trade deficit amounted to EUR 2.1 billion, and
current account deficit to EUR 1.1 billion, a reduction year-on-year by 13.8% and 6.3%, respectively.
Net inflow of foreign direct investments in the first five months amounted to EUR 393.6 million.
8
In the first five months of 2010, compared to December 2009, inflation was 4.1%. The main
deflation factor was low aggregate demand. The base inflation in this period marked a mild growth
of 0.3%, the growth of administratively controlled prices was 7.8%, and the growth of agricultural
products’ prices was 24.9%. June inflation was 0.4%, and compared to December 2009 it was 4.5%.
In the labor market in the observed period, according to the data of NSO, there was a
decrease of an average number of employees with legal entities of 3.6% and real growth of total
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
average net salary of 2.4%, year-on-year. According to the NES data, by end of May 2010, compared
to the same period in the previous year, the number of actively unemployed persons was reduced by
0.6%.
In the period January-May 2010 consolidated public revenues saw a real increase of 1.7%,
and public expenditures of 1.3%, year on year. Consolidated fiscal deficit in this period amounted to
RSD 46.4 billion and it was by RSD 0.6 billion higher than in the same period in 2009.
Monetary trends in the period January-May 2010 were marked by reduction of the
reference interest rate to 8% on annual level and continued growth of credit activity. In this period
domestic loans saw a real increase of 4.7%, loans to companies grew by 4.8% and retail loans by
4.7% compared to December 2009. The subsidized loans that were intensified in 2010 contributed to
the increase of credit activities. The share of non-performing loans in total approved loans in May
2010 was 10% net.
In the first five months of 2010 the Dinar depreciated nominally by 6.7%, mostly in January,
February and May despite the NBS interventions in the interbank foreign currency market with EUR
995.5 million. In May the Dinar marked the major nominal decrease in value from the year start of
3.4%, with the NBS interventions in the interbank foreign currency market of EUR 359 million. At the
end of May 2010 retail foreign currency savings amounted to EUR 6,309 million, and the NBS foreign
currency reserves to EUR 10,731 million.
A slight recovery of economic activities in the period January-May 2010 was influenced by
slight recovery of global economy, successful completion of the fourth revision of the arrangement
with the IMF and decision of foreign banks operating in Serbia to keep their level of exposure to
Serbia. However, the economy is still encountering problems due to the negative effects of global
economic crisis. Company insolvency is on the rise, and there is a problem of collecting trade
receivables, while employment and salary rise prospects in the labor market are limited, which
generates poverty. Consequently, companies and citizens significantly reduced consumption in line
with the reduced income, which results in lower demand for loans and lower import activity.
At the start of the year, the Government and the NBS harmonized their policies and
measures for alleviating negative effects of the global economic crisis on Serbian economy and
finances in 2010 in line with the set objectives of economic policy and performance in the second
half of 2009. The most important measures of economic policy include continued subsidizing of
liquidity loans and investments, consumer loans for citizens and residential loans for newly built
apartments, and the most important measure of monetary policy is reduction of reference interest
rate. According to the data of the Ministry of Economy and Regional Development, the banks
approved EUR 710 million in liquidity loans to companies until 12 July 2010 through the Subsidized
Loans Program, out of which EUR 270 million with foreign currency clause and EUR 440 million in
Dinar loans. A total of EUR 66 million were approved in 633 investments loans. A total of EUR 67
million (11,642 requests) were approved in subsidized consumer loans.
Considering the tendencies in the first five months of 2010 and effects of the economic and
monetary policy measures, gradual recovery of economic activity and moderate GDP growth of 1.5%
are expected in 2010, due to a slower recovery of global economy, risks tied to the negative impact
of Greek debt crisis on the region and economic tensions in the Eurozone, as well as low domestic
demand. Consumption and imports are expected to decline, with simultaneous increase in
investments and exports. The expected increase in net exports and expected recovery of
investments guided by government’s capital investments will contribute to GDP growth. A moderate
economic recovery, accompanied with unemployment growth in 2010 will affect Serbia’s fiscal
position, primarily through lower tax revenues in 2010.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Table 3. Estimates of the main macroeconomic indicators for 2010, %
GDP, real growth
1,5
Export of goods, expressed in EUR
15,0
Import of goods, expressed in EUR
4,4
Current account deficit, excluding grants, % GDP
-9,0
Investments into fixed assets, real growth
4,0
Inflation, end of period
6,0
Average net salaries, real growth
1,1
Labor productivity
4,7
Source: MoF
Revival of foreign trade exchange is estimated in 2010 in line with the revival of aggregate
demand and economic activity. The expected faster growth of export against import, and expected
higher external payments from revenue and lower inflow from remittances will lead to an increased
current account deficit from 7.4% GDP in 2009 to 9.0% GDP in 2010. It is expected that private sector
inflows together with the financial support of the IMF and other international financial institutions
and the EU should cover all needs for external financing in 2010.
Continued inflation reduction trend in 2010 will provide for a more relaxed monetary policy.
The reference interest rate was reduced in May to 8%. It is expected that inflation at the end of 2010
will be around target (6±2%), and it is estimated that the disinflationary pressures (low aggregate
demand, freezing of salaries and pensions, drop of inflationary expectations) will overpower the
inflationary pressures (effects of depreciation on base inflation, increase of administratively
regulated prices above the agreed upon limits, increase in raw oil prices and food prices). The main
risks for increasing the inflation rate in 2010 are related to a more significant growth of aggregate
demand (higher loans and foreign investments, lower savings), increased consumption (unfreezing
of salaries in the general government and pensions), increase in oil price and other primary
products, revival of economic activities and foreign trade due to higher domestic and global
demand, increase of public spending, growth of inflationary expectations.
2. Macroeconomic forecasts for the period 2011-2013
2.1. Estimate of the main economic indicators in international environment
In the first half of 2010 global economy continued its recovery from the consequences of the
crisis, in presence of risks for financial stability and economic growth. Economic recovery intensity is
weakest in Eurozone, while it is stronger in the economies of the Asian region and in the USA.
Moderate economic recovery continues in the USA thanks to the extraordinary incentive measures
of monetary and fiscal policy and the measures in the area of financial regulations that were brought
with a view to hindering irresponsible behavior of banks and other financial institutions. It is
estimated that the US growth rate will be much higher than in the Eurozone. Public finances in the
Eurozone are expected to consolidate, which will influence the return of trust of investors and result
in lowering the risk premium, thus contributing to economic growth.
10
In July 2010 the International Monetary Fund (IMF) published revised April economic
forecasts for 2010 and 2011. A 4.6% global growth was forecast in 2010 and 4.3% in 2011. A 1%
growth in 2010 and 1.6% growth in 2011 was forecast for the EU 27. A faster 6.8% in 2010 and 6.4%
GDP growth in 2011 was forecast for the developing countries. For countries of the Central and
Eastern Europe a 3.2% GDP growth in 2010 and 3.4% in 2011 was forecast.
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
New IMF forecasts show that in 2010 global economy will recover and that the US economy
growth rate will be at a 3.3% high, while a much lower growth rate for the EU 27 of 1% is expected.
At the same time, in both the USA and the EU unemployment rates and inflation rates will increase.
Table 4. International environment - the main economic indicators
2008
Real GDP¹ growth, %
- World total
- European Union
- USA
- Advanced Economies
- Countries of the Central and Eastern Europe
Global trade growth, %
2
Unemployment rate, %
- Eurozone
- USA
Consumer prices, annual changes, %
- Advanced Economies
- Emerging and Developing Economies
Oil price growth, in USD, annual changes, %
2009
2010
2011
3,0
0,9
0,4
6,1
3,1
2,8
-0,6
-4,1
-2,4
2,5
-3,6
-11,3
4,6
1,0
3,3
6,8
3,2
9,0
4,3
1,6
2,9
6,4
3,4
6,3
7,6
5,8
9,4
9,3
10,5
9,4
10,5
8,3
3,4
9,3
0,1
5,2
1,4
6,3
1,3
5,0
36,4
-36,3
21,8
3,0
¹Global GDP according to the purchase power parity
2
IMF, World Economic Outlook, April 2010
Source: IMF, World Economic Outlook, July 2010
In its April 2010 forecasts the IMF assessed the main economic indicators for the region.
After a drop in GDP in 2009, a slight growth of GDP in 2010 is envisaged for all countries in the
region, except Montenegro and Hungary, between 0.2% and 2%. In the period 2011-2013 higher
growth rates are envisaged between 2% and 6%.
The IMF forecast an increase in the inflation rate for the countries in the region in 2010 and
the next three years to the level between 2% and 3%, while Serbia will have a downward inflation
trend from 6% to 4%.
According to the IMF forecasts, the current account deficit will mark a lower level as a share
of GDP in 2010 and the next three years, compared to the high shares in GDP in the previous period.
The level of current account deficit for the countries in the region will be between 5% and 9% GDP,
except Montenegro and Hungary.
11
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Table 5. Regional environment - the main economic indicators
GDP growth, %
Inflation, end of
period
Current account
balance, % of GDP
Bulgaria
Romania
Bosnia and Herzegovina
Montenegro
Hungary
Croatia
Macedonia
Serbia
Bulgaria
Romania
Bosnia and Herzegovina
Montenegro, period
average
Hungary
Croatia
Macedonia
Serbia
Bulgaria
Romania
Bosnia and Herzegovina
Montenegro
Hungary
Croatia
Macedonia
Serbia
2008
6,0
7,4
5,4
6,9
0,6
2,4
4,8
5,5
7,2
6,3
3,8
2009
-5,0
-7,1
-3,4
-7,0
-6,3
-5,8
-0,7
-3,0
1,6
4,7
0,0
2010
0,2
0,8
0,5
-1,7
-0,2
0,2
2,0
1,5
2,7
3,2
1,6
2011
2,0
5,1
4,0
4,6
3,2
2,5
3,0
3,0
3,0
3,0
1,9
2012
4,0
5,0
5,8
5,5
4,5
3,0
4,5
5,0
3,0
3,0
2,1
2013
4,0
4,9
5,3
5,0
4,0
3,0
4,0
5,5
3,0
3,0
2,3
9,0
3,5
2,8
4,1
8,6
-24,2
-12,2
-14,9
-52,4
-7,2
-9,2
-13,1
-18,7
3,6
5,6
1,9
-1,6
6,6
-9,5
-4,4
-7,5
-27,2
0,4
-5,6
-7,3
-7,4
-0,6
3,0
2,6
2,0
6,0
-6,3
-5,5
-7,2
-17,0
-0,4
-6,3
-6,0
-9,0
3,0
2,5
2,8
3,0
4,5
-5,8
-5,5
-6,8
-12,0
-1,0
-6,8
-5,3
-9,2
3,0
3,0
2,8
3,0
4,2
-5,9
-5,5
-6,8
-10,0
-2,1
-6,9
-4,4
-8,5
2,9
3,0
3,0
3,0
4,0
-6,1
-5,5
-6,3
-9,0
-3,0
-7,0
-4,1
-8,0
Source: IMF, World Economic Outlook, April 2010, MoF assessment of indicators for Serbia
In May 2010 the European Commission revised its November economic forecasts and
estimated that economic activity will recover, since individual financial and structural indicators
were stabilized and reversed to the level before the crisis. However, it was noted that the recovery
will last long and be followed by high unemployment rates.
Table 6. International environment - the main macroeconomic indicators
2009
Real GDP growth, in %
World total
EU
Italy
Germany
Slovenia
Eurozone
Consumer prices, annual changes, %
EU
Eurozone
Unemployment rate, in %
EU
Eurozone
Source: European Commission, Economic forecasts, May 2010
12
2010
2011
-0,9
-4,2
-5,0
-5,0
-7,8
-4,1
4,0
1,0
0,8
1,2
1,1
0,9
4,0
1,7
1,4
1,6
1,8
1,5
1,0
0,3
1,8
1,5
1,7
1,7
8,9
9,4
9,8
10,3
9,7
10,4
In Q1 of 2010 EURIBOR had a relatively stable trend. In mid-May 2010 the value of six month
EURIBOR was below 1%. The IMF gave an estimate of the main interest rates’ trend, where the six
month LIBOR is estimated at 0.6% in 2010 and 0.9% in 2011, while an estimated interest on three
month Euro deposits is 0.8% in 2010 and 1.2% in 2011.
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Price of the Urals oil during 2010 was in the range between USD 66.3 and 84.7 per barrel.
After a drastic drop of crude oil price in the global market at the start of 2009, as a consequence of a
drastic drop in demand, the beginning of April 2010 saw a slight increase of oil price - indicating
recovery of global economy. According to the July IMF forecasts, it is expected that oil price in 2010
should grow by 21.8%. It is estimated that an average oil price will be USD 75.27 per barrel in 2010
and USD 77.5 per barrel in 2011.
2.2. Forecast of the main economic indicators for the Republic of Serbia
Based on global economy tendencies, especially in economies of the countries that are
Serbia’s most significant foreign trade partners and the latest estimates of the main macroeconomic
indicators by international financial institutions, while bearing in mind the planned economic
policies, the main economic aggregates and indicators for the Republic of Serbia were forecast in
mid-term.
Table 7. Forecast of the main macroeconomic indicators for the Republic of Serbia
Actual
2009
GDP, RSD billion (current prices)
GDP per capita, in EUR
Estimate
2010
FORECAST
2011
2012
2013
2.881.099 3.073.456 3.314.445 3.626.335 3.986.466
4.189,5
4.138,0
4.445,1
4.809,1
5.255,5
GDP, annual rates of real growth, %
-3,0
1,5
3,0
5,0
5,5
Real growth of individual components
of GDP, %
Private consumption
-4,7
0,6
2,7
3,2
4,0
-6,1
-4,2
-1,3
0,4
0,1
Gross fixed capital formation
-21,2
4,0
12,0
13,8
14,4
Export of goods and services
-4,8
8,7
5,9
9,8
11,3
Import of goods and services
-12,8
3,2
5,2
6,4
8,1
Balance of goods and services, % GDP
-16,6
-15,7
-15,5
-14,5
-13,6
Current account payment balance, in
EUR, % GDP
-7,4
-9,0
-9,2
-8,5
-8,0
Foreign debt, % GDP
74,3
80,3
78,5
77,2
74,7
6,6
6,0
4,5
4,2
4,0
1.889,1
1.831,0
1.840,0
1.861,0
1.891,0
Government consumption
Inflation, end of period, in %
Number of formally employed, annual
average, in 000
Source: NSO, NBS, MoF
GDP projection. According to the estimates for 2010, a moderate growth of 1.5% of GDP is
expected, while a macroeconomic projection in the following three year period envisages the real
growth of GDP at an average rate of 4.5%. After a GDP drop in 2009 and expected recovery of
Serbian economy in 2010, it is estimated that a real growth of GDP will continue in the next three
years.
By industries, in the period 2011-2013 a growth in activities of most industries is expected,
as well as recovery in the civil engineering industry after a sharp drop in 2009 and 2010. Regarding
the industrial sector and agriculture, a moderate growth is expected. A growth based on dominant
| August 2010
13
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
non-tradable goods industry growth is not sustainable on the long run which is why economic policy
should be focused on strengthening industrial production; for that purpose, adequate economic
policy for the next period should be created and incentives for major investments into industry
provided. Sustainable economic growth means initiating a more significant development of industry,
especially export-oriented industries and thus, increase a share of tradable goods in export.
On the expense side of GDP in 2010 it is expected that investments into fixed assets should
grow by 4.0%, government consumption will continue to decline by 4.2% and private consumption is
expected to increase by 0.6%. Export of goods and services in constant prices will be realistically
higher by 8.7%, while import of goods and services will increase slightly by 3.2%. In the period 2011
– 2013, real growth of private consumption is expected to be on average 3.3% p.a., real decrease in
government spending on average 0.3% p.a., growth in investments into fixed capital on average
13.4% p.a., growth in export of goods and services on average 9.0% p.a. and growth of import of
goods and services on average 6.6% p.a.
Key assumption for a stable economic recovery and sustainable economic growth in the next
period is a growth of investments into fixed capital and increase of export, which will create new
jobs and increase the development potential of economy and society at large. The projected GDP
growth in the next three-year period is based on a relatively high growth rate of real investments.
The share of investments into fixed funds and the share of export of goods and services in GDP will
increase from 16.6% and 27.7% in 2009 to 21.1% and 34.7% in 2013.
Graph 1. Real GDP growth: achieved rate and long-term trend
10
8
Trend
8,3
6
%
4
5,6
5,5
5,2
5,0
3,9
2
2001
2002
2003
5,5
3,0
2,4
0
-2
6,9
5,6
1,5
2004
2005
2006
-4
Real growth rates of GDP
2007
2008
2009
2010
2011
2012
2013
-3,0
Linear (Real growth rates of GDP)
On the expense side of GDP in the period 2011-2013 the major contribution to growth will
come from investments and private consumption at the level of 2.7 and 2.3 percentage points p.a.
on average. Government consumption will give a negative contribution to GDP growth in this period.
14
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Graph 2. Contribution of aggregate demand categories to real GDP growth
Projection of employment and wages. In the period 2011-2013 it is expected that
employment growth will be at around 3.2% cumulatively, after a drop in workforce in 2009 and
2010. It is expected that salaries in the period 2011-2013 will rise slower than productivity.
Graph 3. Employment projection
1.891
1.900
1.850
1.861
1.831
1.840
1.800
2010
2011
2012
2013
Number of employed, 000
15
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Graph 4. Real wage and labor productivity trends
5
4,7
3,8
4
3
2,5
2
1
3,8
3,1
2,4
1,4
1,1
0
2010
2011
2012
Average net salaries, real growth
2013
Labor productivity
Inflation projection. Inflation rate at the end of 2013 is projected at 4%, in accordance with
the inflation reduction trend in the next three years. Inflation projection is based on the following
assumptions:
• Planned economic policy in the following three years;
• Restrictive fiscal policy and control of salaries in the general government sector;
• Moderate growth of aggregate demand;
• Expected exchange rate stability based on reducing current account deficit, savings’
growth and better borrowing conditions for banks and companies abroad;
• Planned pace of elimination of disparities between administratively controlled prices;
• Expected moderate rise in oil price;
• Creation of a competitive environment and protection of competition.
Graph 5. Inflation projection
7%
5%
6,0%
4,5%
5,1%
4,2%
4,0%
4,5%
4,3%
4,1%
2011
2012
2013
3%
1%
2010
Inflation, end of period
16
Inflation, period average
Projections of foreign trade. Foreign trade is expected to recover in 2010. A 15% growth in
goods’ export and 4.4% in goods’ import is forecast, in EUR. Export growth is based on expected
revival of export demand. In the period 2011-2013 it is expected that the growth rates for export
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
and import of goods become relatively high - 13.5% and 9.6% on average per annum, expressed in
EUR, which will provide for maintaining the foreign trade deficit (net export of goods and services) at
a lower level than was the case to date, measured as a share of GDP (16.6% in 2009 to 13.6% at the
end of 2013). A lower level of current account deficit is expected as well, with an 8% share of GDP at
the end of 2013 compared to the high share in the pre-crisis period.
Graph 6. Export and import of goods and services
20.000
Mill EUR
10.000
15.261
14.149
15.000
13.136
11.538
10.269
9.414
18.267
16.570
5.000
0
2010
2011
Exports of goods and services
2012
2013
Imports of goods and services
In the following three-year period, a current account inflow is expected from current
transfers, coupled with an outflow for factoring payments. The most important component of
current transfers is the revenue from remittances and retail savings, while the key elements of
factoring payments are outflows for servicing the interest on foreign loans. It is estimated that net
current transfers with non-interest bearing incomes arising from factors in the period 2011-2013 will
average EUR 2.85 billion per annum. A negative balance is expected from net interest payments. The
net effect of current transfers and net factoring payments in the following three-year period will be
positive and stable, at an estimated EUR 2.1 billion p.a. The surplus of the current transfers and net
factor payments will continue to cover an average of 41% deficit of Serbia's foreign trade balance in
the period 2011-2013.
Graph 7. Current account deficit and foreign investments
3.000
2.000
1.010
Mill EUR
1.000
1.828
1.567
1.347
0
-1.000
-2.000
-3.000
-2.708
-2.958
-2.964
-4.000
2010
2011
Current account balance
-3.014
2012
2013
Foreign direct investment (FDI)
| August 2010
17
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
On the basis of the projected tendencies of foreign trade, current transfers and net factor
revenues, projections of the current payments balance have been made. Current payments balance
will be negative and in the period 2011-2013 it will amount to an average of EUR 3.0 billion. Current
account deficit will be financed from foreign direct investments and foreign loans. Average expected
FDI in the period 2011-2013 is about EUR 1.6 billion p.a.
It is estimated that the total (private and public) foreign debt of Serbia in the period 20112013 will increase by about EUR 5.5 billion compared to the 2009 balance, mostly due to the public
debt increase that will rise to about EUR 2.8 billion. In 2010, as was the case in 2009, priority in the
drawing of funds from foreign sources will be given to the public sector (NBS will draw around EUR
1.3 billion from the IMF, the government around EUR 1 billion from international financial
institutions). The private sector should draw new funds from foreign loans when the financial market
recovers, which is expected in 2011. In the next three-year period Serbia’s total foreign debt will
increase and amount to around 76.8% GDP, while it is expected that the foreign debt/export of
goods and services should drop to 215% in 2013.
It is estimated that Serbia’s foreign currency reserves in the period 2011-2013 will cover a
nine-month worth of import of goods and services.
х х х
The established macroeconomic projection will be achieved only if its underlying
assumptions are realized.
Macroeconomic indicators point at the start of recovery of global economy that will
influence recovery of Serbia’s economy in 2010 and its growth in the next three years. However,
there are still external and internal risks that threaten realization of macroeconomic forecasts for
the period 2011-2013.
The main global risk is primarily tied to the duration and intensity of global economic
recovery. It is still difficult to forecast what shape the recovery curve of global and national
economies will be. Sustainability of the initiated economic recovery of Serbia will depend in good
part on foreign demand increase and foreign capital inflow. The concluded agreement on continuing
the IMF arrangement, the declining inflation trend, decreased depreciation pressures and
established frameworks for economic and, particularly, fiscal policy in the next three fiscal years will
have a positive impact on Serbia’s economic recovery.
Internal risks for achieving the projection are related to the non-implementation of planned
reforms and measures of economic policy, sudden changes of aggregate demand, accelerated
inflation, larger oscillations of the Dinar/Euro exchange rate, higher decline of FDI inflow, higher risk
premium for foreign loans granted to Serbian entities, political risks, etc.
3. Economic Policy Objectives and Guidelines in the Period 2011-2013
•
•
•
•
18
Economic policy in the next three fiscal years will be focused on:
Macroeconomic stability;
Sustainable economic growth and development of competitive economy;
Increasing employment and standard of people;
Balanced regional development of the Country.
Macroeconomic stability is based on the formed downward inflation trend and current
account deficit of payment balance. In the next three years the trend of gradual recovery of
economic activity is expected to continue based on stimulating investments and export and on
gradual improvement of situation in the labor market.
In 2010 and 2011 economic growth will be at a moderate 1.5% and 3%, reflecting a slow
recovery of trade partners, low aggregate demand and slow adapting of the labor market. Economic
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
growth is expected to pick up in 2012 and 2013 at a higher rate based on a faster fiscal and
structural adapting and implementation of structural reforms that provide higher productivity,
export and savings. Accelerated economic growth will provide for increasing employment and
standard of people and more balanced regional development of the Country.
Achieving macroeconomic objectives requires adapting and tight coordination between the
fiscal and the monetary policy. Macroeconomic policies, accompanied by structural reforms in the
next mid-term period will contribute to changing the economic growth model that will be based to a
larger extent on improving supply and export, increasing investments and improving
competitiveness of companies. The shift from the current consumption-based model of economic
growth implies focusing the policy and measures on creating conditions for investment and export as
growth drivers. Also, key support to the macroeconomic policy will be continuation of structural
reforms, in accordance with the Stabilization and Association Agreement between Serbia and the
EU. In that respect, measures will be taken to improve entrepreneurial climate and continue the
reform processes in real, financial and public sector.
Fiscal Policy Guidelines. The set mid-term macroeconomic goals imply focusing of fiscal
policy as the key component of macroeconomic policy onto the following:
•
•
•
•
•
•
strengthening legal framework of fiscal responsibility and improving the budget system;
lowering the fiscal deficit and its non-inflationary financing;
low and stable tax burdening of economy, while strengthening tax discipline;
strong limitation of current public spending;
Increase of public investments;
strengthening fiscal discipline in public companies on the state and local level.
The change of the economic growth model from consumption and import to investments
and export will lead to tax base reduction (consumption, import), which, in addition to the
unchanged tax rates, will cause a reduction of tax revenue as a share of GDP. Such trend will be
harder to maintain due to the declining fiscal deficit in the next mid-term and long term period and
it will require significant reduction of current public consumption.
Bearing that in mind, a solid mid term fiscal deficit reduction plan and mid term public debt
control is needed, in order to stimulate local and foreign investors and ensure the necessary
economic and employment growth. The necessary fiscal consolidation will remain focused on
limiting current budget expenditures, especially salaries in the general government sector and
pensions, while creating conditions for higher investments into capital projects of national
importance. The main effect of the restrictive fiscal policy will be a significant decrease of
consolidated general government deficit and public expenditures as a share of GDP in mid term.
In the next mid term period the fiscal deficit is planned to be financed by loans from
international financial institutions and the EU and by issuing treasury bills of different maturity in
order to reduce the rollover risk. Mid term plan of fiscal adjustment will be supported by:
•
•
•
New Budget System and Fiscal Responsibility Law with accompanying regulations that will
ensure the strengthening of fiscal discipline. The legal framework of fiscal responsibility will
also introduce the rules for stronger control over mid term fiscal framework and it will
strengthen the procedures and mechanisms for monitoring and executing fiscal rules;
The new Pension System Law that will revise the parameters for retirement and the pension
indexation formula in order to reduce the share of pension expenditures in GDP gradually;
Strengthening the legal framework for collection and restructuring of debt incurred by
companies and faster resolution of blocked account problem and creating the mechanisms
for out-of-court debt reprogramming and restructuring to reduce the number of
unnecessary and expensive bankruptcies and improve banks’ ability to resolve the growing
bad debt.
| August 2010
19
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
The policy of revenues will be focused on proper changes to the tax system and
strengthening tax administration. Simplification and broadening of the corporate income and
personal income tax base will be ensured, as well as appropriate changes in the property taxation
system. Improving fulfilment of tax obligations will be ensured.
Monetary Policy Guidelines. In line with the Law changing and amending the NBS Law, the
National Bank of Serbia will independently establish and run the monetary policy and in cooperation
with the Government it will establish the foreign exchange rate regime and carry out the foreign
currency rate policy. The adopted changes to the NBS Law will strengthen independence of the
Central Bank in performing the envisaged functions and improve the NBS operations transparency.
In accordance with the Inflation Targeting Agreement, whereby inflation targeting is
officially accepted as the monetary policy strategy, the monetary policy in the next mid term period
will be focused on achieving the target inflation rate. In achieving the target inflation, reference
interest rate will be the main instrument used in carrying out operations in the open market. The
rate will change depending on economic trends and inflation forecasts, while other instruments of
monetary regulation, including the mandatory reserve rate and foreign currency market
interventions, are auxiliary instruments.
The National Bank continues with its floating foreign currency rate regime. The National
Bank reserves the right to intervene in the foreign currency market in case of significant daily Dinar
rate fluctuations, jeopardized financial and price stability and protection of adequate levels of
foreign currency reserves.
In the course of 2010 and 2011 the existing regime of mandatory reserve will be gradually
changing. Under the new regime of mandatory reserves, the number of exceptions from the
mandatory reserves regime will be reduced and there will be only two regulated rates, the higher
one for foreign currency obligations that will be unique (25%) and the lower one for Dinar
obligations (5%). For new foreign borrowings and new foreign currency savings the banks will not be
obligated to reserve additional funds if the previous foreign currency mandatory reserves were
higher than the calculated ones. Such changes will increase transparency, improve bank operations
efficiency, stimulate the level of Euroization and increase the mandatory reserve efficiency as an
additional instrument of monetary policy.
In the coming period the National Bank and the Government will be actively involved in
developing the strategy for reducing the high level of Euroization, which represents a risk for
financial stability and restricts the monetary policy. The main precondition for de-Euroization is to
ensure macroeconomic stability, to develop the Dinar money and capital market, and to develop
foreign currency risk hedging instruments. In that respect, the Ministry of Finance started issuing
treasury bills with longer maturity, and the National Bank started organizing three-month swap
auctions of foreign currency sale and purchase. The prudential and supervisory framework will
continue to be used in order to discourage unsecured foreign currency risks. Additionally, marketbased measures will be used that act by way of incentives, instead of corrective measures that lead
to market disruptions and increase the operation expenses.
20
The diagnosis analyses and stress tests performed in the course of 2009 showed that the
bank system in Serbia is liquid and highly capitalized and that it can sustain stronger macroeconomic
shocks. The bank sector shows a higher indicator of capital adequacy than many countries in the
region, and harmonization of the prudential regulations with Basel II standards will ensure a more
comprehensive assessment of bank capital requirements of all kinds.
Foreign Trade Policy Guidelines. The key priority of economic policy in the next mid term
period is accelerating the EU association process. In accordance with the ratified and signed
Stabilization and Association Agreement (SAA), the Government will focus its efforts on expedited
creation of the necessary political and economic conditions for EU association. Taking into account
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
the economic and other reforms envisaged by the SAA, Serbia is expected to officially become an EU
candidate country in 2010 and to meet the requirements for EU accession in mid term. It is vital for
Serbian economy to swiftly adapt to the standards and norms applicable in trade with the EU and to
accept them in its operations in order to be entitled to significant benefits in trading with the EU.
Serbia will be using EU's financial assistance in the following mid-term period, within the framework
of the Instrument for Pre-accession Assistance (IPA), for all IPA components. The signing of the
Framework Agreement on Cooperation Rules has created a legal basis for determining the EU
contribution and contribution of the beneficiary country in co-financing projects funded by the EU.
Serbia, as an export-oriented country, will continue with the activities aimed at facilitating
stable and high growth of goods and services exports by increasing competitiveness of Serbian
economy as a synthesized result of conducted structural reforms. Based on the adopted Serbian
Exports Promotion Strategy, an appropriate mix of export sector incentives will be taken in the short
and mid-term. Stimulating exports is the key generator of high and sustainable economic growth
rates, which requires a considerable increase in investments and restructuring of the economy that
will provide for introducing new production programs and products at higher processing levels.
Investment by new enterprise owners in the post-privatization period will result in production that is
competitive in the world market, which in turn will bring about to higher exports.
Particular emphasis will be placed on promoting exports to the EU, in order to adapt the
structure and quality of Serbian exports to the EU market. The expedited harmonization of Serbia's
technical regulations with acquis communautaire will contribute to it, as well as inclusion of the
new-approach and old-approach EU Directives into the Serbian legislation. Once the Stabilization
and Association Agreement has been signed, technical regulations and standards for specific product
groups made compliant with those of the EU and appropriate infrastructures for their
implementation put in place, it will be possible to sign the ACAA (Agreement on Conformity
Assessment and Acceptance of Industrial Products). This will provide access to the single markets for
products covered by those Agreements even before Serbia's EU accession, without additional
requirements in terms of testing or certification. ACAA Agreements expand the single EU market in a
specific sector to include the market of the signatory country; these Agreements are a signal of trust
in the system of a candidate country's systems of technical regulations, standardization,
accreditation and metrology. For this reason, Serbia will pay special attention to the development of
these elements of its infrastructure quality. A necessary requirement for this is the acceptance of EU
standards, in particular those relating to safety of use and health and environment protection, as
well as implementation of EU rules on customs procedure, competition, accounting and taxation.
Regulated Price Policy Guidelines. The policy of harmonizing the administratively controlled
prices based on economic principles will continue, starting from the effects on macroeconomic
stability and purchase power of citizens. The NBS forecasts consumer price growth in mid term, and
the Government in cooperation with the NBS defines the guidelines for the administratively
controlled prices growth in that period. Based on the projected inflation the competent government
bodies approve an increase of administratively controlled prices. The administratively controlled
prices adjustment plan for the next three years is based on Memorandum of the RS Ministry of
finance on setting numerical guidelines for regulated prices growth.
The most important system activities in the scope of the price policy include: reducing the
scope of price control; delegation of powers for approving price increases in infrastructure activities
to regulatory bodies, in accordance with relevant laws which govern specific infrastructure activities;
improving price policy in public utility operations; changing the model of oil derivatives’ price
adjustments to gradual application of the market principle price formation.
General Government Wage Policy Guidelines. As part of an overall fiscal adjustment, the
policy of strong control of salaries in the general government sector will be implemented in the next
three years, as stipulated by the established fiscal rules.
| August 2010
21
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
In the scope of comprehensive public sector reform, public administration, public services
and public enterprises reforms will continue, thus leading to cuts in payroll expenditures of all
bodies and departments, accompanied by lay-offs. The goal is to perform rationalization on all levels
and for all government bodies and units, based on the analysis of necessary positions and to ensure
higher work efficiency and provision of quality services.
22
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
II FISCAL FRAMEWORK FOR THE PERIOD 2011-2013
1. Fiscal Trends in 2009 and 2010
1.1. Fiscal Trends in 2009
The effects of global financial crisis massively affected Serbia in the last quarter of 2008.
Serbia’s fiscal position in 2009 was aggravated by significant drop of revenues that, combined with
high volume and unfavorable structure of public consumption would cause significant increase of
fiscal deficit and public debt. Serbia entered into, and then revised, a stand-by arrangement with the
IMF. The arrangement precisely defines, among other, the fiscal policy measures as a response to
the crisis. A 4.5% GDP deficit of the general government sector was planned. Higher deficit,
accompanied by the freezing of salaries and pensions, created a certain room for incentives to
companies (subsidized liquidity loans, investment loans) and to citizens (subsidized consumer loans
for local products, subsidized residential loans), as well as room for higher transfers to households
(unemployment compensations, social welfare).
Deficit of the general government sector by end of 2009 amounted to RSD 121.4 billion, i.e.
4.2% GDP, which is somewhat lower than the target deficit of 4.5% GDP. Increased borrowings for
financing the deficit resulted in an increased public debt-to-GDP share from 29% as it was at the end
of 2008 to 35% at the end of 2009.
Table 8. Consolidated Government Balance in 2008 and 2009
in RSD billion
Public revenues
Public expenditures
Fiscal result
Fiscal result (% GDP)
Public debt (% GDP)
2008
1.143,4
1.213,9
-70,5
-2,6
29,0
2009
1.146,5
1.267,9
-121,4
-4,2
33,7
Source: MoF
In addition to regular budget expenditures, public debt was settled and financial assets
purchased in the amount of RSD 171.6 billion. Debt payment to domestic creditors amounted to RSD
155.3 billion, out of which debt payment arising from issued treasury bills amounted to RSD 107.9
billion, while payments arising from old foreign currency savings and economic revival loan
amounted to RSD 22.1 billion.
Table 9. Public Debt Payment in 2008 and 2009
in RSD billion
2008
2009
Payment of principal to domestic
creditors
32,5
155,3
Payment of principal to foreign
creditors
9,0
12,7
Purchase of financial assets
3,3
3,6
Total
44,8
171,6
23
Source: MoF
Economic crisis strongly affected Serbia in 2009. Negative consequences on public finance
were dramatic. A drop in revenues on the one hand, and the growing need for financing from the
budget on the other (legal obligations, fiscal incentives for companies and citizens for the purpose of
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
alleviating the consequences of the crisis, the growing social transfers to households, etc.) resulted
in a significant deficit of the general government sector which, in circumstances when other sources
of finance dried up (privatization), was financed by increased borrowings, both locally and from
international financial institutions.
Fiscal policy in the times of the crises faced a difficult task of creating certain fiscal conditions
for alleviating the consequences of the crisis. At the same time, the fiscal policy was presented with
a challenge of not endangering sustainability of public finance in mid- and long term by relaxing the
restrictions in the crisis situation.
On the revenue side in 2009 there were no drastic changes of policy, and the drop in
revenues was a result of reducing the tax base as a consequence of worsened economic activities. As
opposed to some countries of the EU and in the neighborhood, tax rates remained at the same level
in Serbia, VAT in particular, and no additional tax on salaries was introduced 1. Tax policy responded
to the drop of revenues by increasing excise tax on oil derivatives and introducing mobile phone use
tax. The above changes to the tax policy had far lesser negative effect on growth than would have a
potential VAT increase or reduction of salaries through increased taxation that would additionally
reduce demand and deepen the decline.
Revenues from direct taxes (personal income tax, corporate income tax) and contributions
for compulsory social insurance have a lot lower public debt-to-GDP share compared to the previous
year. Frozen salaries in government and local administration and public departments, and rise in
unemployment are the main causes for reduced revenues on those grounds. After many years of
growth trend, the revenues from corporate income tax have a lower GDP share compared to the
previous year.
Lower salaries, higher unemployment and reduced consumption resulted in lower share of
indirect taxes in GDP year-on-year.
Regarding VAT revenues, a significant drop was registered for VAT on imports, while the
nominal and real value of domestic VAT is higher compared to 2008. Such VAT trends are a
consequence of foreign trade sector trends and decline of investment consumption. The growth of
domestic VAT is partly a consequence of lower return, and to a minor degree a consequence of a
modest growth in gross collection. A drop in export and import of goods for investment
consumption led to a lower return year-on-year, which in combination with a modest growth in
gross collection of domestic VAT resulted in a significant growth of net domestic VAT.
A drop of imports led to a significant reduction of both VAT revenue on imported goods and
customs revenues. These revenues were reduced also due to the application of the trade part of SAA
as of February 2009. Loss of customs related revenues on these grounds amounted to RSD 78.8
million.
24
1
Some countries compensated drop in revenues by increase in VAT rate(Hungary, Croatia), as well as imposing additional
tax on salaries(so called crisis tax)
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Table 10. General Government Revenues and Expenditures in 2008 and 2009
as % of GDP
2008
2009
Public revenues (1 + 2 + 3)
42,0
39,8
1. Current revenues (1.1 + 1.2)
41,9
39,6
1.1 Tax revenues (1.1.1 + ... + 1.1.7)
36,7
34,7
1.1.1 Personal income tax
5,0
4,6
1.1.2 Corporate income tax
1,4
1,1
11,1
10,3
1.1.4 Excise duties
4,0
4,7
1.1.5 Customs duties
2,4
1,7
1.1.3 Value added tax
1,3
1,3
1.1.7 Contributions
11,5
11,1
1.2 Non tax revenues
5,1
4,8
2. Capital revenues
0,1
0,0
3. Grants
0,1
0,2
Public expenditures (1 + 2 + 3)
44,6
44,0
1. Current expenditures (1.1 + ... + 1.6)
40,0
40,1
1.1 Employee expenditures
10,8
10,5
1.2 Purchase of goods and services
6,7
6,5
1.3 Interest payment
0,6
0,8
1.4 Subsidies
2,9
2,2
18,2
19,3
1.6 Other current expenditures
0,9
0,9
2. Capital expenditures
3,9
3,2
3. Net lending
0,7
0,7
1.1.6 Other tax revenues
1.5 Social welfare and other transfers to
households
Source: MoF
Excise duties are the only tax form whose revenues in 2009 increased their share in GDP
compared to the previous year as a result of changes in the excise tax policy during 2009. Excise tax
policy for oil derivatives was changed twice in the course of 2009: in January 2009 the excise tax on
motor fuel was increased from RSD 27.5 to RSD 42 per liter, excise tax on diesel fuel was increased
from RSD 16.66 to RSD 26 per liter, while excise tax on liquid petroleum gas was increased from RSD
11 to RSD 13 per kilogram 2; in May the oil derivatives excise tax policy changed again, resulting in a
motor fuel excise tax increase to RSD 44 per liter, diesel fuel increase to RSD 30 per liter, while the
new amount of excise tax on LPG was RSD 15 per liter.
The other tax revenues retained the same share in GDP as in the previous year. The major
portion of the other tax revenues is local government level property tax and its trends dominantly
determine the trend of a whole group of other tax revenues. Property tax revenues significantly
decreased their share in GDP compared to the previous year. The cause for a drop in this type of
2
Those were changes in Excise Law. Excise duties in force were 35.91 RSD per liter on motor fuel, 19.1 RSD per liter on
diesel fuel and 11.01 RSD per liter on LPG.
| August 2010
25
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
revenue, in addition to lower collection of annual property tax, lies in a significant reduction of
absolute rights transfer tax due to a lowered volume of property sales. Reduction in individual
revenues in this category was compensated for by introducing mobile phone use tax (it belongs to
the category of other tax revenues), so that the category of total other tax revenues as a share of
GDP remained at the 2008 level. The somewhat improved trend for this category of tax revenues
was also influenced by collection of revenues from re-registration of vehicles with Montenegrin
plates.
When entering into, and subsequently revising the Stand-by Arrangement with the IMF,
reduction of public consumption – above all discretionary government expenditures, was identified
as the principal measure for achieving the target deficit. Savings in these positions provided for fiscal
incentives to companies and natural entities, including increased social transfers to households.
year.
In 2009 total public consumption was reduced by 0.6% of GDP compared to the previous
Individual positions of current expenditures significantly decreased their share in GDP, due
to the savings’ measures (freezing of salaries, additional savings in costs of materials, etc.).
Consequently, the share in GDP was reduced for employee expenditures, purchase of goods and
services and subsidies.
A more significant drop in current public expenditure share was not possible under
circumstances of necessary increase in social transfers to households (various forms of social aid,
unemployment compensations and other transfers). Net lending, containing the major portion of
fiscal incentives, remained at the same level year-on-year.
Restrictions in deficit financing and inability to further reduce current expenditures led to a
decrease of capital expenditure share in GDP, while keeping the previous year’s level or even a
potential growth could contribute to a somewhat faster recovery from the crisis.
Public finance in the EU countries in 2009
Economic and financial crisis led to a significant deterioration of fiscal positions in almost all
EU countries. The discretion measures and automatic stabilizers of the fiscal policy (incentives for
economic recovery) played the key role in stabilizing EU economies. On the other hand, placing
public finance, the deficit and the debt, back into a sustainable framework is a challenge for the EU
countries in mid- and long-term.
Graph 8. Deficit in Serbia, Croatia and the EU countries in 2009, as % of GDP
Sweden
Luxembourg
Estonia
Finland
Denmark
Portugal
Croatia
Germany
Austria
Malta
Bulgaria
Hungary
Serbia
Netherlands
Italia
Slovenia
Czech Republic
Belgium
Cyprus
Slovakia
EU 27
Poland
France
Romania
Lithuania
Latvia
Spain
UK
-13,6
Greece
Ireland -14,3
26
-15
Level of deficit
allowed by the
Maastricht Treaty
-11,2
-11,5
-12
-8,9
-9
-8,3
-6,8
-6,8
-7,1
-7,5
-9
Sources: Eurostat and Ministry of Finance of Republic of Serbia
| August 2010
-5,3
-5,3
-5,5
-5,9
-6,0
-6,1
-6
-2,7
-2,7
-3,2
-3,3
-3,4
-3,8
-3,9
-4
-4,1
-2,2
-3
-1,7
-0,5
-0,7
0
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Deficit in the EU countries (EU 27) in 2009 was 6.8%. The projected deficit for 2010 is
somewhat higher and it amounts to 7.25% 3. The deficit increase in 2009 and 2010 is a result of full
effects of automatic stabilizers (growth in social benefits, primarily unemployment compensations),
generous incentives’ packages (boosting investments, strengthening purchase power of households,
company assistance and labor market assistance) and significant drop in revenues, partly due to a
drop in economic activity, partly as a consequence of discretion policy - reduction of tax rates.
The growing needs for financing the deficit led to an increased debt-to GDP share in almost all
countries of the EU.
Debt-to-GDP (EU 27) in 2009 amounted to 73.6%. Projections for the coming period indicate a
further growth in debt-to-GDP ratio. Such high debt-to-GDP ratio conditions the return of public
finances to a sustainable level, acting as an obstacle to a potentially faster growth.
Graph 9. Public debt in Serbia 4, Croatia and the EU countries in 2009, as % of GDP
Italia
Greece
Belgium
Hungary
France
Portugal
EU 27
Germany
Malta
UK
Austria
Ireland
Netherlands
Cyprus
Spain
Poland
Finland
Sweden
Croatia
Denmark
Serbia
Czech Republic
Slovakia
Slovenia
Latvia
Lithuania
Bulgaria
Romania
Luxembourg
Estonia
.
4,6
15,6
14,1
13,6
13,5
0
22,5
19,5
35,4
33,5
31,3
30,0
27,7
44,0
42,3
56,2
53,2
51,0
30
69,1
68,1
66,5
64,0
60,9
96,7
78,3
77,6
76,8
73,6
73,2
115,8
115,1
Level of public debt
allowed by the
Maastricht Treaty
60
90
120
Sources: Eurostat and Ministry of Finance of Republic of Serbia
1.2. Fiscal Trends and Outlooks for 2010
Fiscal Trends in the first quarter of 2010 were unfavorable. The generated revenues were lower
than planned as a result of slower and misbalanced economic recovery. General government
expenditures in the first quarter were somewhat lower than planned. Such revenue-expenditure
trends led to a slight excess in the target deficit for the first quarter.
27
3
4
European Economic Forecast, Spring 2010
Central government debt
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Graph 10. Revenues, expenditures and the general government deficit
in the first quarter of 2010
350
300
250
276
297
267
plan
collection
291
200
150
100
50
-21
0
-50
revenues
expenditures
-24
deficit
Source: MoF
More positive macroeconomic trends in April and May, compared to Q1 trends, resulted in
improved fiscal trends. In April and May there was a real growth of revenues year-on-year. The
recovery in economic activity had a positive effect on indirect taxes (especially VAT) that grow
significantly despite low demand. Tax on salary and contributions, on the other hand, stagnate, due
to a further grow of unemployment and a meager nominal growth of salaries in the first five months
of 2010.
The fiscal trends in Q1 warned of the overambitious annual general government revenue
forecasts. As agreed with the IMF (as part of the 4th revision of the stand-by arrangement) the 2010
forecasts were revised and the deficit was increased from the earlier agreed 4% GDP to 4.8% GDP,
due to lower assessment of revenues.
Table 11. Consolidated fiscal result in 2010
% GDP
2010
Public revenues
38,9
Public expenditures
43,7
Consolidated fiscal result
-4,8
Source: MoF
Also, measures of fiscal policy that will keep the deficit within the agreed upon limits were agreed,
as well as payments targeting the endangered categories of population will alleviate the
consequences of lower living standard. The following measures are envisaged:
28
o
Salaries in the general government sector and pensions will remain “frozen” until the end of
2010;
o
Additional revenues (part of profit of public companies and the NBS) amounting to RSD 6.5
billion that are included in the forecast amount of revenues will be allocated in the following
manner:
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
o
•
RSD 2 billion as a one-off payment to employees in the general government sector
and pensioners each;
•
RSD 1 billion to the poorest municipalities;
•
RSD 1.5 billion for special purpose social welfare programs.
Any surplus of revenues above the forecast level will not be used to increase expenditures.
2. Fiscal Framework for the Period 2011-2013
2.1. Fiscal Forecasts in the Period 2011 - 2013
Fiscal position of the Republic of Serbia deteriorated significantly during 2009 and 2010.
Fiscal policy, in line with its possibilities, created certain conditions for conducting anti-crisis
measures. In the next mid term period, the main challenge for the fiscal policy will be a credible
strategy for strengthening public finances and sustainable level of deficit and debt trends.
Institutional mechanism that supports fiscal policy maintenance is the legislative framework
containing fiscal rules. Serbia opted for and committed itself to such approach in negotiations with
the IMF, and in the course of 2010 changes to the Budget System Law are expected to be adopted to
include those provisions relating to fiscal responsibility.
The period from 2011 to 2013 is a part of the transition period in the course of which
individual expense categories would be gradually limited, thus creating a base for applying
permanent fiscal rules that would be in force as of 2015.
Forecasts to the fiscal aggregates in the period 2011-2013 are based on forecasts of
macroeconomic indicators for the said period and application of already defined transition fiscal
rules, which leads to reduction of share of public consumption in GDP and reduction of general
government deficit to 1.8% GDP at the end of the observed period.
Table 12. Forecast of the Main Fiscal Aggregates
in the period 2011-2013
as % of GDP
2011
2012
2013
Public revenues
38,3
37,7
37,5
Public expenditures and net loans
42,3
41,2
39,3
Consolidated fiscal deficit
-4,0
-3,5
-1,8
Source: MoF
The forecast general government deficit in all years of the observed period keeps the general
government debt to GDP ratio below 40%.The share of public debt in GDP at the end of the
observed period is 39.4%.
Table 13. Forecast of the public debt share in GDP based on the presented fiscal trends’
scenario in the period 2011-2013
Forecast of the general government public debt
according to the fiscal scenario
Source: MoF
2011
2012
2013
39,8
39,8
39,4
29
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Graph 11. Debt and deficit-to-GDP
45,0
0,0
-0,5
40,0
debt
35,0
-1,0
deficit
debt as % of GDP
30,0
-2,0
25,0
-2,5
20,0
-3,0
-3,5
15,0
deficit as % of GDP
-1,5
-4,0
10,0
-4,5
5,0
-5,0
-5,5
0,0
2008
2009
2010
2011
2012
2013
Forecast of revenues in the next period implies its stable percentage share in GDP averaging
around 38%. The real growth of GDP in the next three years will be moderate, so that public
revenues determined by some of the GDP components would follow that trend as well.
Table 14. Forecast of total revenues and grants
in the period 2011-2013
as % of GDP
2011
2013
Public revenues (1 + 2 + 3)
38,3
37,7
37,5
1. Current revenues (1.1 + 1.2)
38,2
37,6
37,4
1.1 Tax revenues (1.1.1 + ... + 1.1.7)
33,9
33,5
33,5
1.1.1 Personal income tax
4,5
4,5
4,5
1.1.2 Corporate income tax
0,9
0,9
0,9
10,5
10,6
10,7
1.1.4 Excise duties
4,6
4,4
4,2
1.1.5 Customs duties
1,4
1,3
1,3
1.1.3 Value added tax
1,4
1,3
1,3
10,5
10,5
10,7
1.2 Non tax revenues
4,3
4,1
3,9
2. Capital revenues
0,0
0,0
0,0
3. Grants
0,1
0,1
0,1
1.1.6 Other tax revenues
1.1.7 Compulsory social insurance contributions
30
2012
Source: MoF
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Income tax was forecasted to around 4.5% GDP in all three years. The most important form
of personal income tax is tax on salary. The trends of salary-based tax revenue depend on the trends
of the salary mass and employment trends. Since it is expected that the rise in salaries would follow
the rise in productivity, and since a moderate improvement of employment rate is expected, it is
realistic to expect that revenue from personal income tax would have stable share in GDP over the
next period.
Compulsory social insurance contributions represent the largest single form of public
revenue. The share of contributions in GDP is approximately 10.7%. The contributions were forecast
by using salary and employment trend assumptions for the next mid term period.
Profit tax is a tax form that is affected significantly by the drop in economic activity. It is
expected that the crisis effects are carried over to 2011, as a result of lower corporate profitability in
2010. After that a growth in the amount of nominal GDP growth is expected.
Revenues arising from value added tax are forecast to 10.5% in 2011, and an increase of
0.1% of GDP p.a. is expected in the years to come in the observed period. VAT is comprised of two
components, import and local. VAT generated on import of goods and services accounts for around
60% of total VAT, and the forecast is based on import and foreign exchange rate trends, as well as
assumptions regarding the effects of the Interim Trade Agreement application. VAT in the country
has been forecast based on private consumption trends in the coming period and it accounts for
around 40% of total revenue arising from value added tax.
The forecast of revenue arising from excise taxes was made based on the forecast
consumption of products subject to excise tax (oil derivatives, tobacco products, alcohol and coffee)
with regular adjustment of the face value of excise taxes for inflation in the previous year. No
changes in the excise duty policy were forecast, except for excise tax on cigarettes in 2011 and 2012
in accordance with the Action Plan.
Forecast of customs duties’ revenue is directly related to the scope and structure of import.
Since the Interim Trade Agreement with the EU is in force, this type of revenue in GDP is expected to
decrease slightly.
Other tax revenue, significant portion of which is made of property tax, tax on use, keeping
and carrying goods were forecast in accordance with the nominal GDP growth.
Non-tax revenues, compensations, fines, fees and other non-tax revenues are adjusted to
the previous year inflation, which leads to a decline of their share in GDP.
31
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Table 15. Consolidated general government expenditures
according to the economic classification
as % of GDP
2011
2012
2013
Public expenditures (1 + 2 + 3)
42,3
41,2
39,3
1. Current expenditures (1.1 + ... + 1.6)
38,2
36,8
34,8
1.1 Employee expenditures
9,9
9,5
9,1
1.2 Purchase of goods and services
6,5
6,3
5,9
1.3 Interest payment
1,4
1,5
1,2
1.4 Subsidies
1.5 Social welfare and other transfers to households
2,0
1.6 Other current expenditures
0,3
1,9
17,4
0,3
1,8
16,4
0,3
2. Capital expenditures
3,4
3,7
3,8
3. Net lending
0,8
0,7
0,7
Source: MoF
Fiscal adjustment on the expense side of general government in the observed period is 3%
GDP. The overall reduction is related to current consumption and net budget loans, which creates an
environment for preserving, and then increasing public investments in the next mid-term period.
Room for reduction of current expenditures can be find through rationalization and reform
of government administration. Reducing and limiting number of employees in government and local
administration, comprehensive reforms of large sectors, such as the pension system, education and
health sector, will create conditions for reducing current expenditures.
Payroll expenditures. After two years of “frozen” salaries in the general government sector,
in 2011 salaries will be adjusted twice a year, in April by the inflation in the previous six months plus
half of real GDP growth, while October adjustment is done by the inflation in the previous six
months only. The same indexation rule was applied in forecasting these expenditures in 2012 and
2013. By applying the said formula, the salaries of employees in the general government sector
reduce their share in GDP by 0.8% in 2013.
Purchase of goods and services. The expense category relating to purchase of goods and
services in 2011 remained at the previous year’s level, and savings in this expense category are
expected as a by-product of rationalization and restriction of new employment up to the level
prescribed by the law. Higher expenditures within this category were approved only for conducting
population census that was planned in 2011. In 2012 and 2013 these costs are forecast to grow only
to the level of inflation.
Interest payment. The costs of interest payment have been planned in accordance with the
payment schedule for public debt. Trends in interest payable by local authorities have been taken
into account. The share of interest expense in GDP in 2011 amounts to 1.4%, in 2012 to 1.5% of GDP,
while in 2013 a reduction of this category’s share in GDP is forecast by 0.3 percentage points.
32
Social welfare and transfers to households. The largest category of transfers to households
is the expenditure for pension disbursement. As agreed with the IMF, in order to protect the
standard of this category of population it was envisaged for pensions in 2011 and 2012 to follow the
trend of salary growth in the general government sector. In forecasting pensions the same
indexation rule was applied as in case of employee expenses. In 2013 pensions are adjusted to the
growth of the living costs. Other forms of social benefits and transfers to households in 2011 were
adjusted by applying the legally prescribed indexation and projected increase in the number of
beneficiaries. The share of this category of expenses, by applying the above rules, declines from
18.2% GDP as it amounts in 2011 to 16.4% in 2013.
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Capital expenditures. Reduction of the general government current consumption creates an
environment for preserving, and then increasing public investments in the next mid-term period.
Considering the limited funds, special importance in mid-term investments’ planning will be paid to
the investments of national importance (Corridor 10).
Table 16. Consolidated general government expenditures
according to the functional classification
as % of GDP
2011
Social protection
2012
2013
17,3
16,5
15,6
General public services
4,2
4,1
3,9
Defense
2,1
2,2
2,4
Public order and safety
2,1
2,1
2,0
Economic affairs
5,2
5,0
4,6
Environmental protection
0,3
0,3
0,3
Housing and community amenities
1,4
1,5
1,5
Health
5,6
5,3
5,1
Recreation, culture and religion
0,7
0,7
0,7
Education
3,4
3,3
3,1
42,3
41,2
39,3
Total
Source: MoF
Regarding the classification of functions in the next period, significant decrease of share of
social protection in GDP was planned, as well as expenditures for general public services and
economic affairs, as a result of the planned decrease of total public expenditures. For other
categories of the classification of functions either an insignificant decrease of share in GDP was
planned or it was planned to keep them at the same level, except the defense-related expenditures.
2.2. Expenditure limits for budget beneficiaries in the period 2011-2013
The Budget System Law introduced a three-year expenditure framework to improve the
budget process and mid term planning. This increases public finance predictability for budget
beneficiaries, as well as transparency of the entire planning process. Introduction of the three-year
expenditure framework, and strengthening of fiscal discipline, should prevent a cyclic expansion of
public expenditures, i.e. pro-cyclic fiscal policy.
The main goal of fiscal policy in the next period is to ensure the trend towards and within
sustainable deficit and debt. Fiscal capacity unchanged, sustainable deficit level and, consequently,
debt can be achieved only through reduction of the general government public expenditure.
The forecast mid term fiscal framework for the general government envisages reduction of
public consumption by 3% GDP in the period 2011-2013. The forecast reduction of public
consumption financed from the state budget in the above period is close to 2% GDP.
Significant fiscal adjustment is not possible without a strong fiscal discipline and observing
the upper limit of expenditure envisaged by these forecasts.
33
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Table 17. Total budget expenditures and expenditure limits
in RSD billion
2011
2012
2013
Total budget revenues
690,5
744,6
811,9
1. Tax revenues
652,5
704,9
770,6
38,0
39,7
41,3
793,2
856,5
874,7
41,0
48,0
44,0
3,0
3,0
3,0
= Total available for budget expenditures
749,2
805,5
827,7
= Total budget expenditure limits
765,5
813,1
830,1
Available/lacking funds
-16,3
-7,6
-2,4
2. Non-tax revenues
Total budget expenditures
- Interest payment
- Reserves
Source: MoF
Starting from the target general government deficit of 4% GDP, and the state budget deficit
of 3.1% GDP and forecast revenues, it results that total expenditure of the State budget, including
interest expense and budget reserves cannot be much higher than RSD 793.2 billion in 2011, RSD
856.5 billion in 2012 and RSD 874.7 billion in 2013.
After deducting an amount required for interest payment and budget reserves from total
expenditures, the amounts available for distribution to budget beneficiaries are RSD 749.2 billion in
2011, RSD 805.5 billion in 2012, and RSD 827.7 billion in 2013.
The difference between the upper expense limit and the currently distributed expense limits
by beneficiaries is largest in 2011 and amounts to RSD 16.3 billion. At the end of a mid term period
the difference is insignificant. At a certain level of tax and total fiscal capacity and the necessity of
reducing public spending to stay within the limits of sustainable deficit and debt, there is no
additional fiscal room in the period 2011-2013 for financing new policies.
In these circumstances, fiscal conditions can be ensured only by departing from the existing
policies that are deemed inefficient and/or that do not produce the set objectives.
Bearing in mind uncertainty in respect of economic trends and the speed of economic
recovery, a solution for covering the above difference remains to be found at a later stage of the
budget process.
If forecasts remain at the same level, observing the upper limit for budget expenditures
would imply reducing the limits distributed over the budget beneficiaries by RSD 16.3 billion.
Table 18. Total state budget expenditure limits by beneficiaries
in RSD
Item
34
Budget beneficiary
1
NATIONAL PARLIAMENT
2
PRESIDENT OF THE REPUBLIC
3
GOVERNMENT
4
5
6
STATE PROSECUTORS’ COUNCIL
7
JUDICIAL BODIES
8
9
10
MINISTRY OF FOREIGN AFFAIRS
11
12
2011
1.738.310.000
2012
1.816.578.000
2013
1.897.980.000
190.838.000
200.443.000
211.019.000
1.819.904.000
1.825.398.000
1.882.302.000
CONSTITUTIONAL COURT
132.938.000
141.257.000
149.860.000
HIGH JUDICIAL COUNCIL
137.973.000
145.174.000
152.590.000
51.891.000
54.548.000
57.270.000
13.432.093.000
14.200.295.000
14.995.136.000
OMBUDSMAN
125.678.000
132.905.000
140.349.000
STATE AUDIT INSTITUTION
225.551.000
244.478.000
258.025.000
5.376.652.000
5.546.671.000
5.841.903.000
MINISTRY OF DEFENSE
73.000.000.000
73.217.076.000
76.853.842.000
MINISTRY OF INTERNAL AFFAIRS
44.475.294.000
46.636.341.000
49.301.226.000
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Item
Budget beneficiary
13
SECURITY INFORMATION AGENCY
14
MINISTRY OF FINANCE
15
MINISTRY OF JUSTICE
16
2011
2012
2013
3.588.817.000
3.765.848.000
3.958.795.000
305.231.954.000
353.200.394.000
360.782.986.000
6.338.347.000
6.657.959.000
6.985.806.000
MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT
19.917.572.000
19.995.448.000
20.067.214.000
17
MINISTRY OF ECONOMY AND REGIONAL DEVELOPMENT
41.246.194.000
35.464.528.000
25.994.272.000
18
MINISTRY OF MINING AND ENERGY
2.495.582.000
2.379.988.000
2.375.404.000
19
MINISTRY OF INFRASTRUCTURE
20.239.677.000
20.255.049.000
20.270.829.000
20
MINISTRY OF TELECOMMUNICATIONS AND INFORMATION SOCIETY
21
MINISTRY OF LABOR AND SOCIAL POLICY
22
23
1.761.418.000
921.799.000
324.283.000
100.672.151.000
104.759.537.000
109.003.014.000
MINISTRY OF SCIENCE AND TECHNOLOGICAL DEVELOPMENT
8.954.047.000
9.340.449.000
9.724.794.000
MINISTRY OF ENVIRONMENT AND SPATIAL PLANNING
3.530.560.000
3.479.340.000
3.433.374.000
24
MINISTRY OF YOUTH AND SPORTS
3.553.284.000
3.565.242.000
3.687.359.000
25
MINISTRY OF CULTURE
5.201.317.000
4.978.504.000
5.091.126.000
26
MINISTRY OF THE DIASPORA
236.465.000
247.485.000
258.557.000
27
MINISTRY FOR KOSOVO AND METOHIJA
4.168.629.000
4.365.210.000
4.649.821.000
28
MINISTRY OF HUMAN AND MINORITY RIGHTS
29
MINISTRY FOR THE NATIONAL INVESTMENT PLAN
30
31
32
416.616.000
435.906.000
455.265.000
8.673.225.000
10.649.008.000
10.656.970.000
STATE LEGISLATION SECRETARIAT
80.542.000
85.530.000
90.683.000
STATE DEVELOPMENT AGENCY
43.874.000
46.582.000
49.379.000
NATIONAL STATISTICS OFFICE
4.271.362.000
866.839.000
759.290.000
33
STATE ADMINISTRATION FOR HYDROMETEOROLOGY
1.195.567.000
1.194.033.000
1.234.448.000
34
STATE ADMINISTRATION OF GEODESY
1.327.315.000
1.412.613.000
1.501.027.000
35
STATE ADMINISTRATION OF SEISMOLOGY
26.457.000
27.979.000
29.546.000
36
DIRECTORATE OF STATE PROPERTY
286.333.000
190.664.000
200.712.000
37
STATE ADMINISTRATION OF INFORMATICS AND INTERNET
28.251.000
28.694.000
30.170.000
38
SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY
0
0
0
39
DEMINING CENTER
12.310.000
13.051.000
13.813.000
40
INTELECTUAL PROPERTY ADMINISTRATION
105.443.000
112.128.000
119.051.000
41
DIRECTORATE OF INTERNAL NAVIGABLE ROUTES – PLOVPUT
177.909.000
188.068.000
198.529.000
42
GEOMAGNETIC ADMINISTRATION
64.914.000
68.327.000
71.838.000
43
SOCIAL INSURANCE ADMINISTRATION
22.991.000
24.308.000
25.660.000
44
SERBIAN ACADEMY OF SCIENCE AND ART
248.079.000
261.151.000
275.163.000
45
PUBLIC PROCUREMENT ADMINISTRATION
COMMITTEE FOR EXAMINING RESPONSIBILITY FOR HUMAN RIGHTS’ VIOLATION
64.865.000
68.722.000
72.696.000
46
47
MINING AGENCY
48
ENERGY EFFICIENCY AGENCY
49
COMMISSARIAT FOR REFUGEES
50
51
ANTI-CORRUPTION AGENCY
COMMISSIONER FOR INFORMATION OF PUBLIC IMPORTANCE AND PERSONAL DATA
PROTECTION
52
EQUAL RIGHTS’ PROTECTION COMMISSIONER
53
48.000
50.000
52.000
673.000
710.000
749.000
14.306.000
15.185.000
16.061.000
1.279.573.000
1.326.467.000
1.374.840.000
162.482.000
168.262.000
174.164.000
119.384.000
126.040.000
132.884.000
39.883.000
41.533.000
43.208.000
DIRECTORATE OF RESTITUTION
63.725.000
67.249.000
70.867.000
54
DIRECTORATE OF RAILWAY TRANSPORTATION
47.690.000
50.728.000
53.874.000
55
STATE AGENCY FOR PEACEFUL RESOLUTION OF LABOR DISPUTES
20.105.000
21.156.000
22.227.000
56
ADMINISTRATION FOR JOINT OPERATIONS OF GOVERNMENT BODIES
2.475.755.000
2.372.768.000
2.065.231.000
57
ADMINISTRATIVE DISTRICTS
58
MINISTRY OF TRADE AND SERVICES
59
MINISTRY OF HEALTH
60
MINISTRY OF EDUCATION
61
62
384.699.000
408.967.000
429.599.000
2.166.741.000
2.199.014.000
2.261.489.000
3.840.108.000
3.980.232.000
4.107.058.000
112.943.364.000
118.979.223.000
126.049.067.000
MINISTRY OF PUBLIC ADMINISTRATION AND LOCAL SELF-GOVERNMENT
514.147.000
467.740.000
420.497.000
MINISTRY OF RELIGION
604.559.000
631.022.000
657.397.000
809.566.431.000
864.067.893.000
882.012.640.000
TOTAL
Balance settings (how were individual expenditures and expenses planned, parameters for the
structure of individual types of expenditures)
•
•
Discretionary expenditures (account group 42, 45, 48 and 62) in 2011 were planned at the
2010 level (index 100.0). Interest on public debt was forecast in accordance with the public
debt payment plan (forecast amount required to pay interest in 2011 is higher by about RSD
6 billion than in 2010).
The rights from the area of social protection (account group 47) were indexed in accordance
with the regulations governing this area, with an increase in the number of beneficiaries
regarding child and family support (parent and child allowances), pregnancy leave
| August 2010
35
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
•
•
•
36
compensations and rights from the area of the disabled veterans support and rights of
natural entities.
The current budget reserves (account group 49) will increase to RSD 3 billion in 2011 or by
about RSD 2.4 billion compared to 2010. The increase was made based on the estimate of
insufficiently planned amount of current budget reserves in 2010 and the potential need for
current reserves in 2011.
Costs of purchase of non-financial property - investments (group of accounts 51, 52, 54 and
55) were planned at the 2010 level (index 100.0), with individual purposes balanced in
accordance with the new policies (digitalization, social apartments, bringing warehousing
capacity for goods reserves to an optimum level, integration of refugees, etc.).
After two years of enforcing the salary and pension “freezing” measure, an appropriate exit
strategy had to be found in the next mid term period, i.e. preventing extreme growth of
these categories of public spending on the one hand, and ensuring equal distribution of tax
adjustment balance on the other.
 Indexation of salaries and pensions in the next mid term period is defined in
the Government’s conclusion and changes to the Pension and Disability
Insurance Act. Harmonization of salaries and pensions will be an integral
part of fiscal responsibility regulation.
 Pensions and salaries in the public sector will be adjusted in April 2011 and
April 2012 by the rise in consumer prices in the previous six months plus half
of the real growth rate of GDP in the previous year, if such growth is
positive, and additionally pensions and salaries in the public sector should
be adjusted in October 2011 by the rise in consumer prices in the previous
six months.
 According to the plan parameters, as of April 2011 the pensions would
increase by 3.4%, and as of October 2011 by 2.5%. In 2012, the increase in
April would be 3.5%, and in October 2.0%. In 2013, the increase in April
would be 3.0%, and in October 2.0%.
 Transfers from the budget for paying the pensions in 2011 are planned at
RSD 226.5 billion, as follows:
 Transfer from the item: Ministry of Finance - RSD 199 billion.
 Transfer from the item: Ministry of Labor and Social Policy - RSD 27.5 billion.
Transfers for payment of salaries are higher in 2011 by RSD 11,510.0 million
compared to 2010 (in case of the Ministry of Finance they are by RSD 8.9
billion higher and in case of the Ministry of Labor and Social Policy by RSD
2.6 billion).
 Based on the Bill Law changing and amending the Law on Pension and
Disability Insurance which is ongoing the procedure for harmonizing the
minimum pension within the 2011 limits another RSD 2 billion were included
(with the Ministry of Labor and Social Policy).
 To pay military pensions in 2011 it is necessary to provide RSD 23.5 billion
from the budget, which is by RSD 593 million more compared to 2010 (due
to indexation).
 In accordance with the Government’s Conclusion of May 28th, 2010, and
according to the plan parameters, the April 2011 salaries would increase by
3.4%, and as of October 28 by 2.5%. In 2012, the increase in April would be
3.5%, and in October 2.0%. In 2013, the increase in April would be 4.5%, and
in October 2.0%.
 In 2011 no increase in the number of employees has been planned.
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
•
In line with the balance potential of the budget, the non-earmarked transfer funds were
increased for 2011 by the nominal growth of GDP (7.7%), i.e. by RSD 2 billion, totalling RSD
27.7 billion.
A very small number of budget beneficiaries generated savings that provided for conditions
for financing new policies and expenditures.
Under such circumstances, considering balance limitations, many requests by budget
beneficiaries for higher expenditures and costs were rejected, while certain costs and expenditures
were not even taken into consideration.
policy:
•
•
•
•
•
•
•
•
•
Expenditures that were not included - fiscal risks in relation to departures from the projected
The Draft Law on Social Protection envisages the broadening of legal rights, i.e. higher social
benefits. The effects of that law were not taken and are estimated at around RSD 3 billion;
Salary expense does not include the funds for rewards and bonuses (effect on budget RSD
2.2 billion and health RSD 889.0 million), as well as jubilee awards (effect on budget RSD
364.2 million and health RSD 233.1 million);
Unfreezing of the broadened effect of the General Collective Agreement, which refers to
meals and thirteenth salary and increasing the years of service base pay from 0.4 to 0.5% for
each full year of service, are not included in salary expense (effect on budget RSD 81.8 billion
and health RSD 32.4 billion);
Regarding salary expense in judiciary, proposal by the Ministry of Justice was not accepted
to use the 2010 salary level as a base for the forecast, because that would mean that
rationalization was not performed. If the said proposal were accepted, additional funds
amounting to RSD 3.4 billion would be required;
The programs of scientific and research organizations were forecast on the 2010 level. The
requests regarding the program of founding a center of excellence amounting to RSD 199.4
million could not be accepted; the program of co-financing doctoral and academic studies
amounting to RSD 377.0 million; the program of co-financing integral and inter-disciplinary
research amounting to RSD 835.0 million;
Establishing a national importance institute amounting to RSD 482.0 million and a portion
that was not defined by a program amounting to RSD 1.2 billion;
Non-earmarked transfers of funds to local government units were, in line with the available
funds, planned at a lower level of RSD 21 billion than the one that they would have been
entitled to if full legal scope was applied;
In the area of economy, lower amounts were envisaged for further investments into the
FIAT (proposed RSD 25 billion, while RSD 9.5 billion were included in the limits, which is
three times more than in 2010);
Land appropriation on the Corridor 10 implies ensuring additional funds in the amount of
RSD 5 billion.
2.3. Tax and Customs’ System
Serbia's tax system has been reformed in the past decade and made largely compliant with
the practice of modern market oriented countries, mosetly with the EU Member States. This
certainly did not exhaust all options for improving tax environment, since the macroeconomic and
wider social and political framework were changed along with the changes to the tax policy. After
many years of running a pro-cyclic fiscal policy, and in the light of global economic and financial crisis
that affected the Serbian economy significantly, an increasing focus is placed on tax reforms. Even
more, since the crisis resulted in a sharper drop of public revenues than GDP. The necessity of
reducing and changing the structure of public spending on the one hand and tax reform on the other
should contribute to maintaining macroeconomic stability and improving the competitive
| August 2010
37
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
environment in order to stimulate employment and investments. Increasing indirect taxes while
reducing direct taxes is the main pathway of tax reforms in the world. Accepting such trend in Serbia
would have to be neutral in terms of revenues. That means that in the coming period every
invalidation of a new tax (e.g. tax on mobile phones) or reduction of a tax rate of existing taxes
would need to be compensated by introducing new taxes or increasing the existing levels of a tax.
Continued application of measures for reducing tax evation may result in higher tax revenues.
Possible reform pathways in the next period are:
•
Increase in the general VAT rate, as well as reduced VAT rates for some products (e.g.
computers, new apartments);
•
Reducing or cancelling the rates of contributions for some of the existing forms of
compulsory social insurance;
•
Progressive salary taxation while increasing non-taxable census;
•
Changes in calculating the basis for annual personal income tax;
•
Changes to property tax - changing the criteria for calculating the basis, changes of rates, tax
credits and tax exemptions;
•
Changes to Corporate Income Tax Law, primarily regarding incentives and benefits.
In view of the fact that international economic relations are based on an open, exportoriented economy and active integration with international economic developments, the customs
system and policy will be designed in accordance with these principles in order to boost the
competitiveness of Serbian economy in the world market and attract foreign investment.
Further harmonization of customs regulations with the EU and the following laws and
secondary legislation instruments are scheduled for enactment:
•
•
•
Further harmonization of the Customs Law and by-laws (with a view to defining the
application of Customs Law provisions in more detail) with the EU regulations and WTO
rules. The new Customs Law, in addition to the above, envisages a continuation of
preferential treatment of import of raw materials, intermediates and equipment;
Passing new Customs Fee Law after Serbia’s accession to the World Trade Organization, with
a view to copying the consolidated customs rates that were agreed with the WTO members
in the course of negotiation;
Passing the Regulation on harmonizing the Customs Fee Nomenclature for the purpose of
harmonizing it with the Combined Nomenclature of EU and transfer of preferential customs
rates in line with all Free Trade Agreements signed by the Republic of Serbia.
Liberalization of customs protection regarding the import of goods from the European Union
is implemented through application of the Interim Trade Agreement and trade-related issues
between Serbia and EU, starting from 30 January 2009, in accordance with the timeline envisaged in
the agreement between Serbia and EU. Full liberalization of trade is expected in 2014. Also, Free
Trade Agreement with the Republic of Turkey and Free Trade Agreement with the EFTA countries
will be applied in this period, thus leading to liberalization of customs protection for import of goods
originating from these countries.
38
Membership in WTO means accepting certain obligations to grant concessions, but benefits
for the economy as a whole will be much greater than the alternative of permanently protecting
certain activities. Membership in WTO will provide a stable, open and non-discriminated access of
domestic goods and services to the market of the WTO member states. Protection of local economy
will be limited, but allowed through compensatory measures, anti-dumping customs duties, as well
as certain non-customs related measures. In the short run, the cost of accessing WTO will be higher
than the benefits. Local companies will be faced with fierce foreign competition as a result of
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
lowering customs duties, which will decrease profit. On
the other hand, consumers will have an offer of imported
goods at lower prices and better quality. Additionally, for
manufacturing companies liberalization of import will
mean lower import prices of inputs, which will increase
their competitiveness and profitability in mid-term.
Other charges and duties like special charges for
importing agricultural products and seasonal customs
duties will be gradually reduced and transferred into a
customs equivalent (tariff equivalent) which is in line with
the rules of WTO and EU requirements.
Fees for the work of customs bodies will be
cancelled, and cost compensation will be defined
according to the real cost of providing special services.
2.4. Improvement of Public Finance Management
Fiscal Responsibility Regulation. Inadequate size
and structure of public consumption in Serbia has been
especially pronounced in the period of the crisis. During
the years of high economic growth, fiscal policy acted in a
pro-cyclic way, by increasing public consumption on the
one hand, and reducing fiscal capacity through reducing
certain tax rates, invalidating certain taxes and
introducing many incentives, on the other. This prevented
fiscal policy from acting in a counter-cyclic manner more
significantly during the recession, as room for fiscal
incentives for economy is limited.
Considering these trends, a need was recognized
to broaden the existing Budget System Law with
provisions relating to the definition of fiscal responsibility
and the fiscal discipline strengthening, in order to ensure
sustainability of public finance in the mid-term. The
Budget System Law will change until September 2010.
The Draft Law envisages the period in which
transition rules will bring public spending, the deficit and
debt to the level that makes it possible to apply
permanent rules. The rules will be a combination of rules
relating to limiting the level of public spending, especially
certain categories of current spending, the level of deficit
and sustainable level of public debt to GDP share.
Budget System Law. The Budget System Law
introduces into the field of public finance modern and
efficient
instruments,
mid-term
framework
of
expenditures and public investments, fiscal risk
assessment, etc. The above institutes represent the
mechanisms that will help the budget system to achieve
the goals of aggregate fiscal discipline, allocation and
operative efficiency.
Fiscal rules have a long history. However,
until the 1990’s only a few countries
applied fiscal rules. The accumulated
public debt during 1970’s and 1980’s,
recognizing the need that communities
with a common currency must be based
both on monetary and fiscal rules of
economic policy, led many countries to
introducing national or taking over
international fiscal rules. Significant
increase in fiscal deficits and public debt
during the last crisis emphasized this
need even more and in 2009 eighty
countries had either national or
supranational fiscal rules in force.
Fiscal rule is a permanent limitation of
fiscal policy expressed through a simple
numeric rule applied on fiscal
aggregates.
Fiscal rules may relate to restricting the
deficit, which consequently leads to
restricting public debt, they may be
explicit rules limiting the debt to GDP
share, they may limit total or individual
expense categories, as well as revenue
levels.
Each of the above rules have certain
strengths, as well as weaknesses.
Therefore, when limiting the deficit,
room must be left for automatic
stabilizers and discretion measures.
Limiting expenditures or individual
categories of expenditures is a good rule
when the goal is to limit the growth of
public administration costs and to
influence the structure of public
spending, but the rule defined in such a
manner is not directly related to reaching
a sustainable debt level (it does not limit
the revenue side). Bearing this in mind,
many countries opted for a combination
of many rules to achieve satisfactory
results.
“Fiscal Rules – Anchoring
Expectations for Sustainable Public
Finances”, IMF, December 2009
39
Key novelties introduced by the Budget System
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Law are as follows:
•
•
Improvement of mid-term planning through the introduction of a mid-term framework for
expenditures in the national budget. These projections will increase the predictability of
public finance for budget beneficiaries, while at the same time preventing cyclical expansion
of current expenditures. The mid-term framework is also introduced in investment planning
as a necessary condition in the process of defining strategic development projects.
Creating conditions for using development aid of the European Union and Serbia’s obligation
to form its own proper institutions for managing the funds of the European Union through
the so called decentralized system for management of EU funds.
Harmonization of State aid policy with EU principles. Law on State Aid Control has been
adopted, thus establishing state aid control system in line with the acquis communautaire.
State aid policy will be focused on reducing State aid as a share of GDP, which is general
intention in the EU. In addition to reducing State aid as a share of GDP at all government levels,
activities will also be focused on changing the structure of this aid with the ultimate aim of
increasing the share of horizontal State aid, because this form of aid is seen as the least selective and
therefore produces minimum disruption of market competition.
Within this category of State aid, particular emphasis will be placed on support to small and
medium-sized enterprises, which will ultimately lead to higher employment, as well as on support to
training, research, development, innovation and environment protection. State aid for regional
development, as a form of horizontal State aid granted for the purpose of stimulating the
development of less developed and/or underdeveloped areas and/or regions, is targeted at
alleviating structural problems and regional imbalances in terms of development, as well as at
reducing economic, natural, social and other disparities in those areas and/or regions.
The effects of State aid control system will be manifold and will be reflected not in the
prohibition of state aid, but in allocating public funds, primarily the funds from the budget, where
they are most needed and where the effects of these investments will be the biggest, for general
benefit of the whole community.
2.5. Fiscal Risks
Serbia's public finance is facing a number of risks in the current year and in the following
mid-term period, which makes the country's fiscal position very fragile. Fiscal risks are deemed to be
circumstances which, if they occur, could result in significantly lower revenues or higher
expenditures. Whether the envisaged volume of revenues and expenditures is achieved or not
depends on the successfulness of fiscal policy in minimizing the probability of risk. The actual success
in fiscal risk management depends on political, macroeconomic and social circumstances in the
country and throughout the region.
Departure from the expenditure policy envisaged by the Memorandum and impact on
fiscal result was presented in point 2.2.
A slowdown in economic growth. A key determinant of fiscal revenues, and consequently
fiscal result, is the level of Gross Domestic Product and its nominal and real growth in the following
period. In the event of GDP growth reduction by 1 percentage point in 2010, the growth of revenues
will be lower by 0.53 percentage points, i.e. RSD 16.9 billion.
40
Foreign exchange rate trends. Foreign exchange rate trends are an important source of
fiscal risk, both in respect of revenues and expenditures, particularly in respect of servicing
obligations arising from public debt and the public debt to GDP ratio.
Table 19 shows an estimated total and individual effect of the Dinar depreciation against the
Euro and against the US dollar, Swiss Franc and special drawing rights, on increasing the amount
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
needed to pay interest and principal arising from public debt in the next three years (in RSD million),
while Table 20 shows the effects of the same scenario on the public debt to GDP ratio growth.
Table 19. The effect of 1% depreciation of the selected currencies on public debt servicing
2011
2012
2013
EUR:RSD
566,8
619,7
635,9
USD:EUR
246,7
245,4
244,2
CHF:EUR
19,2
16,2
19,9
SDR:EUR
3,9
16,4
31,1
total
836,7
897,7
931,2
Table 20. The effect of 1% depreciation of the selected currencies on public debt to GDP ratio
growth
EUR:RSD
0.25%
USD:EUR
0.05%
CHF:EUR
0.01%
SDR:EUR
0.02%
total
0.33%
Under conditions of unchanged demand, and having in mind the current foreign currency
and goods structure of import, the Dinar depreciation against the Euro of 1% gives a combined effect
of RSD 2.15 billion increase in budget revenues - mostly through increasing VAT revenue from
imports, customs duties and excise tax on imported goods. Negative effect is also possible due to
consumption elasticity of imported goods, which is why there would be equivalent or greater
reduction of revenues from the said sources.
Debts and arrears. A significant fiscal risk is also the possibility that guarantees for loan
repayment on behalf of public enterprises might be activated, as well as possible assuming of
unsecured debts and arrears of public enterprises (public enterprises "Zeleznice Srbije" and "Putevi
Srbije"). The total amount of guaranteed liabilities is EUR 1.4 billion, i.e. RSD 147.2 billion, out of
which the major portion of contingent liabilities refers to PE “Putevi Srbije” and PE “Zeleznice Srbije”
- a total of RSD 109.9 billion or 74.7% of total guaranteed liabilities. The structure of guaranteed
liabilities of public enterprises “Putevi Srbije” and “Zeleznice Srbije” is given in Tables 21 and 22.
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2013
Table 21. Guaranteed loans - PE “Putevi Srbije”
Creditor
Original
currency
Agreed amount
Debt balance in
EUR
Debt balance in
RSD (mil.)
EBRD
EUR
228,000,000
94,775,000
9.861,6
EIB
EUR
334,104,000
212,603,000
22.121,9
EU
EUR
185,545,000
185,545,000
19.306,5
Societe Generale
Bank Paris
EUR
100,000,000
100,000,000
10.405,3
UniCredit Bank
EUR
75,000,000
75,000,000
7.803,9
Marfin Bank
EUR
60,000,000
60,000,000
6.243,2
total
75.742,5
Table 22. Guaranteed loans - PE “Zeleznice Srbije”
Creditor
Original
currency
Agreed amount
Debt balance in
EUR
Debt balance in
RSD (mil.)
EBRD
EUR
117,000,000
92,533,000
9.628,3
EIB
EUR
157,256,000
96,046,000
9.993,9
EU
EUR
35,769,000
35,769,000
3.721,9
EUROFIMA
CHF
149,500,000
104,172,000
10.839,4
total
34.183,5
Interest rate trends. Interest rate trends in the local and international market significantly
influence the amount of interest payment when servicing public debt liabilities, even though the
structure of public debt interest rates of 73% in favor of fixed interest rates can be deemed relatively
favorable. Table 23 shows an impact of parallel shifting of the EURIBOR and LIBOR curve on the
relevant currencies by 1 percentage point and on the increase of interest payment amount in 2011
expressed in RSD million.
Table 23. The effect of the EURIBOR and LIBOR growth on public debt payment
EURIBOR
1.680,0
LIBOR on USD
288,9
LIBOR on CHF
71,6
Other
77,4
total
2.117,9
Also, bearing in mind the high level of positive correlation between the NBS reference
interest rate and average weighted yield on the treasury bills stock, the expected more restrictive
measures of monetary authorities and potential exchange rate depreciation in the coming period
may significantly increase the amounts envisaged for treasury bill interest payments.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
III PUBLIC DEBT MANAGEMENT STRATEGY OF THE REPUBLIC OF SERBIA IN
THE PERIOD 2011 TO 2013
1. Structure of Serbia's Public Debt
Serbia’s public debt, as of December 2009, amounted to EUR 9.8 billion, or 31.3% GDP. The
debt to GDP share increased compared to the previous quarter due to a decrease of the annual GDP,
not because of a debt increase. However, it must be noted that reduction (even though insignificant)
of public debt in the fourth quarter is a consequence of the write-off of Kosovo and Metohija’s
foreign debt amounting to EUR 381.3 million. If there had been no write-off of the Kosovo and
Metohija’s public debt portion, the debt to GDP share would be 33.3%. Also, it must be noted that
the official public debt statistics do not include Serbia’s liability to the International Monetary Fund
from using the funds of allocating special drawing rights amounting to EUR 426.6 million (EUR 388.4
million in special drawing rights).
The major portion of public debt is still denominated in Euro (66.3%), other currencies and
special drawing rights comprise 21.0%, while only 12.7% of debt is denominated in Dinars.
Regarding the interest rate structure of debt, it has not changed significantly either, and at year end
a 76.2% of total public debt was contracted at fixed, while the remaining 23.8% at variable interest
rates. The major portion of debt contracted at variable interest rates (78.0%) is related to the
EURIBOR and LIBOR rates on the Euro, a minor portion to the LIBOR on the US dollar and Swiss Franc
(13.7% and 3.8%, respectively), while the remaining portion (4.5%) to other interest rates. This is
certainly a normal practice, but it carries an additional risk factor that must be borne in mind,
specially considering that in the next period an interest rate growth in the international money
market is expected, and consequently, the cost of debt servicing. The interest, and especially the
currency structure of debt is changing in the desired direction (toward higher denomination in
Dinars and with fixed interest rate) as treasury bills are taking higher share in a total public debt.
Table 24 provides an overview of the values of traditional debt sustainability measures:
balance and annual debt service amount to GDP, export and budget revenues ratio. Although there
are no clearly defined boundaries of these ratios’ acceptability, they can be observed within the
boundaries defined by the IMF and the World Bank.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
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Table 24. Serbia’s external position indicators
2006
2007
2008
I 2009
II
2009
III
2009
IV
2009
External liquidity indicators (in %)
Foreign currency reserves/Import of 6,3
goods and services (in months)
3,8
7,6
8,1
8,6
9,0
Foreign currency reserves/short-term 717,3 729,8
debt
336,4
412,6
516,4
486,0
464,5
Foreign currency reserves/GDP
38,4
32,6
24,2
24,5
27,6
30,8
34,5
Debt service/GDP
7,0
9,8
10,5
10,2
12,7
10,2
10,5
33,9
34,8
36,4
44,1
37,1
38,7
Debt service/Export of goods and 23,5
services
5,2
External solvency indicators (in %)
Foreign debt/GDP
63,3
60,2
64,8
64,8
67,4
70,4
74,1
Short term debt/GDP
5,3
4,5
7,2
6,0
5,3
6,4
7,4
Foreign debt/Export of goods and 214,2 204,8
services
214,7
222,1
236,2
252,7
268,7
Foreign debt/Export of goods and 156,5 156,8
services and remittances
170,9
178,4
181,1
186,2
194,4
Source: National Bank of Serbia
Since it is still below the upper limit of lower indebtedness (defined by the IMF and the
World Bank as 48% GDP and 132% export), Serbia is still not in a situation when its indebtedness
would turn into a macroeconomic problem. Yet, the quick pace of borrowing, and the long term
problem of high payment balance current account deficit must be kept in mind. Therefore, in the
coming period attention must be paid to the level of indebtedness and the purpose of borrowing,
i.e. the possibility of regularly servicing the taken over commitments.
In the course of 2009 debt balance arising from treasury bills grew to RSD 100.7 billion. The
Budget Law of the Republic of Serbia envisages net borrowings by means of treasury bills issuance
amounting to RSD 26.4 billion in 2010, which means that the growth of this portfolio will be
significantly slowed down. On the other hand, the structure of borrowings by means of treasury bills
is increasingly changing in favor of longer maturities, from 6 to 12 months, and it was announced
that in the course of 2010 bills with 18 and 24 months maturity would be issued (this is already
ongoing), which will probably, although insignificantly, make this type of borrowings more
expensive. Transferring to longer maturities of treasury bills will contribute to money market
development and de-Euroization of economy. Since these securities can be bought by non-residents
as well, this will contribute to higher competition in the financial market. At the same time, the state
would ensure access to funds at lower cost in such a manner, and create conditions for financial
market development by issuing an instrument suitable for secondary trade.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
2. The objectives of borrowing and public debt management
The primary objective of Country’s indebtedness and public debt management is to provide
funds necessary to finance the budget, provided that the cost of financing in mid- and long term are
minimal and the level of risk acceptable.
Additional objective, certainly, is to develop domestic government securities. A developed
market is the main precondition for efficient debt management and for efficient liquidity and
borrowing costs’ management with quality debt portfolio diversification.
3. The main guidelines
The main guidelines for public debt management are as follows:
•
Cautious and prudent debt management;
•
Transparent and predictable borrowing and debt management;
•
Promoting liquidity and a wide circle of investors into the government securities and
developing an efficient infrastructure in the domestic capital market.
3.1. Cautious and prudent debt management
During the mid term period from 2011 to 2013, debt management will be focused on
optimizing the structure and reducing the risk of the public debt portfolio, including the
development of infrastructure of the local securities’ market. Public debt portfolio structure
optimization is related primarily to its currency structure, maturity structure and interest rate
structure. Considering the forecast GDP growth and the forecast budget deficit, the total public debt
and percentage of its share in GDP will mark a slight growth, but it will remain at a completely
acceptable level that guarantees debt sustainability and its regular long term servicing.
The above applies only if further borrowing is related to refinancing the existing debts and
financing the planned deficit. If the guaranteed debt stock continues to grow (it was planned to issue
guarantees amounting to RSD 200 billion in 2010 only) public debt at the end of 2010 will already
have passed the 40% limit of GDP (40.7% at year end), only to remain at the same level without
further increase of the guaranteed debt until the end of 2012, and to arrive at the 37.8% GDP only at
the end of 2013.
Public Debt Portfolio Currency Structure Optimization
Too high share of public debt denominated in foreign currency (87.3% at the start of 2010,
77% planned at year end) points at a too high exposure to currency risk, which would make debt
financing more difficult in case of a significant depreciation of the Dinar and significantly increase the
indebtedness level. Currency risk exposure is particularly high for the Euro, as 66.3% of debt is
denominated in this currency, which may significantly influence debt balance. On the one hand,
while the Dinar is relatively stable or even appreciates in respect of the Euro, the currency risk is not
pronounced and borrowing in this currency is a luring alternative. On the other hand, certainly,
exposure in one currency significantly increases potential negative impact of changes in the market,
especially the significant depreciation of the Dinar against the Euro, which happened at the end of
2009 and start of 2010. For that reason, financing in the next period will be focused as much as
possible on the Dinar sources, so that significant decrease in the share of foreign currency
denominated debt in total public debt is expected at the end of 2013. Again, provided that the
further growth of guaranteed debt, which is normally denominated in foreign currency, is stopped.
Otherwise, the share of local currency would hardly reach around thirty percent (without increasing
the level of guaranteed debt after 2010), i.e. a lot less if the same pace of granting guarantees
continued until the end of 2013, under a realistic assumption that the guaranteed debt would still be
denominated in foreign currency.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Therefore, the major portion of new borrowing would be directed to local currency
(certainly, if possible, without the foreign currency clause), while foreign currency borrowing would
mostly be focused on international financial institutions (considering extremely favorable borrowing
conditions). In foreign currency borrowings the Euro will continue to be the most attractive,
considering the country’s goal of accessing the EU and paying a big portion of due debts and interest
in this currency. Local currency borrowings will primarily be effectuated by issuing government
securities in the local market. The precondition for this is a rapid development of the local securities’
market, as well as OTC market, which will further develop this market.
It should also be borne in mind that major fluctuations of currency rates, especially if they
show a clear trend of the Dinar depreciation which is significantly higher than planned and achieved
inflation, may put in question the enforcement of the selected strategy:
•
If the Dinar depreciates sharply against the Euro the level of indebtedness will be put in
question (Dinar depreciation of 10% means increasing the level of indebtedness in relation
to GDP by about 3 pp).
•
The possibility of financing a large portion of needs in Dinars will be jeopardized as potential
investors will insist on contracts in foreign currency (current investments in Dinars at a lower
than 10% rate with annual Dinar depreciation at the same rate would cause losses to
investors).
•
If in such circumstances borrowing in Dinars is still possible, the price will certainly be much
more unfavorable.
•
Government revenues in Dinars will follow inflation and GDP growth above all. Even in case
of higher Dinar depreciation, they will not be enough for covering the increased level of
indebtedness, both nominal and real, the increased needs for liquid funds for debt servicing
and increased costs of new borrowings in Dinars.
Under such scenario of events the public debt currency structure optimization
predominantly based on borrowings in local currency would not be sustainable and it would have to
be replaced by exit strategy of further borrowing in foreign currencies (or in local currency with
changeable yields, tied to a foreign currency or another parameter), in the Euro for the most part.
Considering the long lasting procedures required for borrowing in the market, it is necessary to
prepare the conditions in advance for potential timely implementation of such exit strategy.
Bearing in mind that we are considering a debt management strategy for a mid term, the
most probable scenario is the one in which the conditions requiring implementation of the main
and/or alternative strategy will cyclically replace one another. Under such developments, it should
be insisted on implementing the main strategy, i.e. as high as possible percentage of the Dinar
borrowing, whenever conditions allow so. The exit strategy based on Euro borrowings would be
used in case when Dinar borrowing is not possible or it causes unacceptably high costs.
Public debt structure optimization upon maturity
46
Considering the public debt structure by maturity (by maturity of interest and principal)
there is an obvious conflict of interests at first sight. Short term financing normally incurs lower total
costs (lower interest rate and shorter payment period) and shorter period of currency exposure
(regarding foreign currencies) and interest rate risk (in case of borrowing at variable interest rates).
On the other hand, considering the possibility of servicing and the risk of refinancing, longer
maturities are a much better alternative.
The maturity-based debt optimization strategy must be build upon a balance between the
desired and the possible, taking into consideration other objectives as well, particularly the debt
currency structure. Since priority will largely be given to borrowing in the local market and in local
currency, the portion of the remaining necessary borrowing that can be done with longer maturity
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
and with favorable cost structure (borrowing from the international financial institutions) should
certainly be done in that manner. At the same time, the needs for servicing are well distributed over
a longer period, without significant fluctuations.
For the most part of borrowings in the local currency, maturity will be defined according to
the market potential, with an objective of having as wide choice as possible by market development.
The strategy of further development of the government securities’ market, as the main instrument
of public debt strategy, will be based primarily on gradual supply of an increasingly wider choice of
longer maturity dates, which will together with the OTC market development result in defining the
yield curve in the local securities’ market.
Bearing in mind the current situation and plans for the current year, it is quite probable that
as early as in 2011 local securities could be issued with 3 to 5 years maturity, where the structure of
the Dinar denominated debt, by maturity dates, would become completely acceptable.
Until the above conditions are fulfilled, maturity of local securities will be adjusted to the
market potentials. It would result in high demand for rollover within a relatively short time and,
consequently, the rollover risk.
As a solution for the case that rollover becomes impossible and/or that it costs too much
(the mentioned situation with the Dinar depreciation that leads to reducing supply and increasing
the rollover price) the same alternative exit strategy of borrowing in Euros is imposed, for which
timely preparations are necessary.
Public Debt Interest Rates Structure Optimization
Public debt interest rate structure is tied to the market risk, i.e. interest rate change risk. This
type of risk is pronounced in borrowings with variable interest rate (currently 23.8% of Serbia’s
public debt). Also, at the time of concluding a contract and during the initial period of loan payment
the costs of debt servicing with variable interest rate are always lower than the costs of debt with
fixed rate, and in the event of negative interest rate change trend, total loan costs can be
significantly lower.
Since this is obviously a double-edge decision (potentially lower costs that can grow or fixed
costs with a risk of remaining significantly higher than the ones with variable rate) and a relatively
small differences in costs caused by interest rate fluctuations (compared to the possible exchange
rate fluctuations, which in case of the local currency are very often one-way and unfavorable) the
strategy will be based on making tactical decisions “on a case-to-case basis”. However, attention
should be paid not to increase the share of loans with variable interest rates in the structure of debt
significantly, compared to the as-is situation.
In cases when there is an alternative, decision should be based on several facts:
•
Difference between the costs of offered variable and offered fixed rate;
•
Current level of interest rates;
•
Estimated long term interest rate movements (which often boils down to planning your
January ski holidays next year based on the this year’s May weather forecast);
•
An option of fixing the interest rate or an option of early payment and the price of such
option;
•
Current structure of debt interest rates and the forecast structure for the next period.
To sum up: for Dinar borrowings by issuing domestic securities fixed rates will be insisted
upon whenever possible; regarding borrowings from international financial organizations (if there is
an option of choosing) variable interest rates will be chosen with an option of fixing; while in case of
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
borrowings in the market in foreign currency variable interest rate will be sought if possible with an
option of early payment.
If the strategy based on borrowing in the local market in Dinars at fixed rates is
accomplished, percentage of share of debts with variable interest rate in the next period will be
declining.
3.2. Transparent and predictable borrowing and debt management
Future borrowing needs depend on the current debt balance (interest payment and due
debt payment), estimated fiscal deficit, debt management policy (instruments, conditions and new
debts’ maturity dates) and the process of privatization, since it is possible to use a portion of
privatization revenues for financing deficit and in such a manner reduce the borrowing needs.
Depending on the current debt balance and payment forecast, it is expected that around
RSD 80 billion should fall due annually in the coming period (around EUR 800 million +/- 5%) in
interest and principal (excluding the domestic securities which, due to the currently short maturity
dates, need to be refinanced many times a year). The payment plan shows that there is no single
period which is overtly burdened by maturities. The servicing needs are practically equally
distributed in the period 2011-2016, to decrease later. Certainly, the most significant single liability is
the payment of foreign currency savings which falls due in the period to 2016. If we observe the
government bonds, around RSD 100 billion will need to be refinanced in the course of 2010 with the
current maturity of 3, 6, and 12 months. By introducing securities with longer maturity (18 and 24
months in 2010, 3 to 5 years in 2011 and 2012) and significant stock increase from 120 to 150 billion
a year, all the three focus years will be significantly burdened by Dinar liabilities arising from
domestic securities. However, regarding a significant increase in the share of Dinar denominated
debt in a total debt and the expected further positive trends in the interest rate for Dinars, such
developments can be characterized as extremely favorable.
Table 25 does not include the needs for servicing new liabilities. Considering the expected
interest rates and the grace periods for new borrowings, in 2011, 2012 and 2013 we should count on
around 850 billion a year.
Table 25. Debt servicing needs, in EUR million
2010
48
2011
2012
2013
Principal
EUR
416.695
362.890
327.330
347.376
Interest
EUR
17.557
29.250
4.484
2.373
Domestic Debt
EUR
434.252
392.140
331.814
349.749
Principal
EUR
217.554
230.258
285.304
307.705
Interest
EUR
176.311
166.611
156.991
146.603
Foreign debt
EUR
393.866
396.869
442.294
454.307
TOTAL
EUR
828.116
789.009
774.108
804.056
Table 25 does not include debt servicing funds arising from government bonds and the funds
necessary for servicing new drawing of funds from project loans. Also, please note that project loans
are an unpredictable gray zone of public debt thanks to poor planning and lack of a real financial
control mechanism, both in respect of project selection and their implementation. Fortunately, in
the previous period poor planning resulted in slowed down project indebtedness and slowed down
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
drawing of project loan funds, which had a positive effect on the public debt level and structure. The
same applies to the loans guaranteed by the government (contingent debt), the level of which, for
the same reasons, is extremely low compared to the demand of beneficiaries.
3.3. Development of efficient infrastructure for the local capital market
By stimulating liquidity of the government bonds market and by spreading the circle of
investors into the government bonds, the Ministry of Finance showed a clear determination to
develop the local capital market, especially the government bonds market as its most important
component. On the other hand, developing this market segment signficantly contributes to efficient
public debt management, thus producing significantly higher liquidity, transparency and
predictability. That is why the Ministry’s activities in mid-term will focus on realizing the goals
relating to the local debt securities market infrastructure.
In the period 2011 to 2013 the Ministry of Finance plans to enable defining the reference
yield curve for the Dinar with deadlines up to 10 years. By issuing treasury bills with 18 and 24
months maturity, as planned for the current year, the Ministry continues its aggressive approach
that started in 2009. As part of strategy for the coming period, an issue of bills with maturity of 3 and
5 years in 2011, of 7 years in 2012 and 10 years by end of 2013 is planned. With multiple increase of
the government bond stock in this period all necessary conditions would be created for secondary
trade in government bonds and for defining the yield curve for the local currency.
Significant improvement to or replacement of the existing auction platfor will provide for
issuance of coupon bonds as early as the start of the next year, which is a precondition for issuing
longer maturity government bonds. The platform would need to support reopening, as well as
different auction methods, while its final version would probably provide for institutionalized
secondary trade as well.
Certainly, in its efforts to promote transparency and predictability the Ministry will publish
quarterly auction plans in a timely manner.
Finally, the idea of the primary dealer system in the government bonds market will be
seriously considered. Such approach would certainly further contribute to promoting market
liquidity, forming the yield curve and reducing the country’s cost of borrowing.
4. Expected results of the public debt management strategy
Taking the projected budget deficit in the period 2011-2013 as a starting point, and
considering the net issuance (stock increase) of government bonds of RSD 120 billion in 2010 and
RSD 150 billion in each year to come, it can be concluded that by applying such strategy public debt
would remain within the 40% and 45% of GDP, remaining at all times within acceptable and clearly
kept limits. Also, the total debt stock would have grown to around RSD 1,350 billion (EUR 13 billion),
out of which maybe as much as 50% of total debt (currently around 13%) would be Dinar
denominated (670 billion). The share of foreign debt would simultaneously drop to around 35%,
while the share of variable interest rates would be reduced significantly from 24% to around 18%.
In the event of applying the most drastic scenario of alternative strategy by financing all
needs in foreign currency in the foreign market, the share of debt in gross domestic product would
end up at around 38%, but with a much more unfavorable structure where around 98% of debt
would be denominated in foreign currency, 75% of foreign debt and, probably, around 40% of debt
with variable interest rate.
Finally, the above percentages should be adjusted by the increase of the project loan levels,
where each RSD 30 to 40 billion of project loan level increase results in an increase of public debt
share in GDP by 1 percentage point.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
Of course, public debt management in the coming period is jeopardized by numerous risks.
Potential deviation from the projected inflation, higher deficit, lower gross domestic product or
significant fluctuations of exchange rate (the Dinar depreciation in particular) would significantly
aggravate debt servicing and result in a rise of indebtedness. For example, an annual depreciation of
10% would require additional ten billion dinars approximately to service debt in each of the years to
come, only for servicing debt denominated in foreign currency. That would cause an upward shift of
the debt-to-GDP ratio up to the limit of 50% in the event of applying the alternative strategy, which
in this case would be much more probable. Combined with other negative trends, the situation at
period end could be significantly more unfavorable.
The primary objective of Country’s indebtedness and public debt management is to provide
funds necessary to finance the budget, provided that the cost of financing in mid- and long term are
minimal and the level of risk acceptable.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
IV STRUCTURAL REFORMS IN THE PERIOD 2011-2013
1. General guidelines for the real, financial and general government sector
reform
In the transition period to date, Serbia achieved a notable progress in real and financial
sector reforms, but is lagging behind in respect of general government reforms. The global economic
crisis caused a slowdown in implementation of economic reforms in 2009, and these will intensify in
the next mid-term period with a view to contributing to the development of market economy and
increasing its capacity for competitive production and export, as well as strengthening the countries
capacity regarding stabilization and accession to the EU.
Implementation of the remaining economic reforms, typical for the second phase of
transition, will ensure the basis for sustainable growth and stability of economy after its coming out
of recession. Privatization and creation of a competitive environment and conditions for a free
market game in a level field, with minimum transaction costs and adequately regulated monopolies
is of key importance for long-term sustainable economic growth and macroeconomic stability. Such
an environment is conductive to entrepreneurship, business and technological innovations and
competitiveness of economic operators, while at the same time suppressing rent-seeking,
redistributive behavior and wealth generation through privileges and corruption.
Key economic reforms in the following three years will include:
•
Improved business legislation and capacity building of institutions through the enactment
and implementation of system laws harmonized with acquis communitaire, which create a
legal framework and systemic conditions for the functioning of market economy;
•
Finalized privatization of socially-owned enterprises and of state-owned banks and insurance
companies, including efficient enforcement of bankruptcy legislation as well;
•
Improved regulatory framework for infrastructure and public utilities activities and launching
of privatization (partial or full) of enterprises in the said sectors, in accordance with the
specific infrastructural activities development strategy;
•
Improvement of the business and investment environment, including the competition
protection policy improvement;
•
Continued construction and modernization of infrastructure as a general condition for a
country’s development;
•
Continued reform of the judiciary aimed and institutional and functional capacity building,
especially in terms of enforcement of court decisions;
•
Privatization of State-owned agricultural land and building land, including regal regulation of
restitution;
•
Prevention of corruption and crime.
1.1. Real Sector
Reforms of the entrepreneurial sector in the next mid-term period will be focused on
improving business environment and increasing the role of private sector in economy.
In the past nine transition years, a notable progress was made in improving business
environment, especially in the area of company registration and founding. In the next period
improvement of business and investment conditions in Serbia will continue. For that purpose,
adoption of system regulations will be made faster and efficient regulations will be enforced as an
important precondition of economic development and social prosperity. This would create a more
favorable economic environment, increase legal security and competitiveness of companies in the
regional and European environment. In the scope of the guillotine of regulations, the existing
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
regulations related to economy will be re-examined, with a view to extinguishing the obsolete
regulations, improving the existing ones from the aspect of their clarity, consistence and accuracy
and extinguishing those provisions that increase administrative processing and slow down the
country’s economic development. With a view to more efficient implementation of laws and
secondary legislation, the efficiency of the judicial system will be improved and the periods needed
for resolution of legal disputes will be shortened.
Special attention will be paid to annulling the unnecessary regulations that hinder
companies’ operations. It was envisaged that all ministries should increase the speed of annulling
the unnecessary regulations and procedures based on the 217 adopted recommendations of the
Government. To date, only 63 recommendations have been put into practice. The goal is to simplify
procedures and make operations more cost-effective and to attract foreign direct investments to a
more significant extent. Elimination of obstacles for investments and construction of buildings is of
great importance. For that purpose, the permit approval procedure for construction of buildings will
be simplified and the period required for granting these permits shortened, while corruption in this
area will be eliminated. By-laws in the area of construction will be adopted and local administration
will increase its capacity to apply these regulations, followed by stricter control of their application
and strict fines for corruption. Tax and other incentives for new investments that increase
production, export and employment will remain in force. Special incentives will be approved for
major new investments, especially into tradable goods.
Improvement of business climate will be achieved by the following activities:
•
•
•
•
Finishing the “guillotine of regulations” project with a view to terminating unnecessary laws
and by-laws and improving the existing regulations, which would result in reducing the costs
of companies and simplifying the legislative framework of importance for companies;
Adopting new legislative regulations in the area of economy, particularly enacting a new law
on companies with a view to strengthening corporate management and removing the
obstacles to founding and operations of entrepreneurs and companies;
Dealing with the property rights, meaning that land ownership is resolved and property that
had been taken away from citizens and institutions after World War II is restituted. Deficient
budget funds condition compensation for sequestrated property in the form of government
bonds to avoid complications that restitution in kind carries;
Fight against corruption and increasing the role of Anti-Corruption Agency with broadened
powers and responsibilities.
Increasing the role of private sector in the economy will be ensured by finishing privatization
of the remaining companies with social capital. The role of the private sector will increase through
corporatization of all major companies owned by the state, and some of these companies can be
fully or partially privatized after corporatization or private management agreed, as well as corporate
restructuring of major public companies and reduction of government subsidies mid term.
The real sector has been significantly restructured and privatized in the past transition
period. The remaining reforms of the real sector in the next three years are:
52
•
End of privatization of socially-owned companies and implementation of a more efficient
bankruptcy procedure in case of companies that failed;
•
Acceleration of the restructuring process of public companies and continued preparation for
their privatization (majority or minority);
•
Liberalization of infrastructural activities
•
Better protection of competition;
•
Stimulating export potential of companies;
•
Stimulating SMEs development.
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Privatization of socially-owned companies. From 2002 until June 2010 a total of 1,714
socially owned companies were sold in tenders and auctions, with EUR 2.1 billion of income
generated and agreed investments of EUR 1.3 billion. In the capital market in this period the shares
of 554 companies were sold and a total of EUR 523.8 million in income generated. In the period from
2003 until 30 June 2010 a total of 568 privatization agreements were terminated, mostly due to nonpayment of installments, discontinued production, failure to observe the investment and social
program, disposing of property contrary to the provisions of the sales and purchase agreement. As
the privatization process unfolded, the number of terminated agreements increases, so that in 2009
more privatization agreements (90) were terminated than concluded (74). In the period JanuaryJune 2010, 90 agreements were terminated and 23 agreements concluded through tenders and
privatization auctions. Privatization agreements were generally terminated with local buyers. The
percentage of failure in tender sales was 17.5%, and in auctions 23.3%.
Table 26. Privatization results from 2002 to June 2009
Enterprises
sold
(Т+А+Тk)
Employees
(Т+А+Тk)
2002
2003
2004
2005
2006
2007
2008
2009
I-VI
2010
Total
211
637
234
303
264
276
232
83
28
2.268
37.320
76.823
38.682
58.505
43.432
39.412
21.751
8.103
1.024
325.052
in EUR mil.
Selling price
(T+A+Tk)
Investments
(T+A+Tk)
Social
program
(Т+А+Тk)
318,8
839,8
153,6
372,3
254,2
347,0
228,5
73,1
3,7
2.591,0
320,1
319,8
99,6
100,9
288,0
103,9
63,2
40,6
0,9
1.337,0
145,8
128,3
2,6
0
0
0
0
0
0
276,7
Source: Privatization Agency
A sale of the remaining socially-owned companies that the Privatization Agency is preparing
for privatization is expected, while the companies that the Agency fails to find a buyer for will go
bankrupt or be liquidated. For that purpose a new law was brought that ensures higher degree of
satisfaction of the creditors’ claims, shortening of the bankruptcy procedure and lower costs of the
bankruptcy procedure. It is expected that automatic bankruptcy and termination of fictitious
companies should erase more than 10,000 insolvent companies. In the post-privatization period the
Privatization Agency will monitor if contractual obligations taken over by contract on acquisition of
socially-owned capital are fulfilled and deal with disputable privatizations.
Special attention will be paid to the privatization of the remaining big socially-owned
companies which are undergoing the process of restructuring. To date 35 such companies were
privatized, and successful restructuring and privatization of several more such companies is
expected. The Government will continue to implement the special program of restructuring and
privatization of parts or whole companies in military industry and military-funded institutions.
Restructuring and Privatization of Public Enterprises. Progress has been made in the
process of restructuring public companies on the state level, while restructuring public companies
on the local level is still lagging. Through restructuring, the public enterprises improved their
economic and financial performance by a spin-off of non-core activities and staff downsizing,
adjusting the price of services with economic principles, forming separate enterprises in the fields of
electricity and oil industry, regulating the old debt, modernizing production and technological
processes.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
In the next mid term period the restructuring process of public companies will continue,
where the share of private sector will increase and investment conditions improve as follows:
financial consolidation of PE “Zeleznice Srbije” and spinning off the railway infrastructure and
transportation of goods and passengers, financial consolidation of PE “Putevi Srbije”, restructuring of
PE UCE - Resavica to prepare it for privatization, restructuring of PE PTT “Srbija” after clarifying
ownership and contractual relations with “Telekom Srbija” a.d., restructuring of “JAT Airways” a.d.
to prepare it for privatization, further downsizing in all public companies.
Privatization of state and local public enterprises did not achieve satisfactory results. For
privatization of companies with state capital it is important for the state and local public enterprises
to become closed shareholders companies and to identify capital owners, which requires changes to
the Law on Assets Owned by the Republic of Serbia, the Law on Public Enterprises and Activities of
Common Interest. Additionally, the state will identify the companies of strategic interest that will be
privatized if acceptable offer is ensured. The Government is preparing for sale the companies
Telekom Srbije a.d., Galenka a.d., and JAT Airways a.d. where the strategic investors would secure
investments for modernization and increasing competitiveness of these companies and revenues for
the state budget to pay international loans and invest into infrastructure.
The process of corporatization of companies with state capital will accelerate in order to
change the legal form and speed up the reforms in public companies, including the restructuring and
privatization, if market conditions permit so. Transforming public companies on those grounds
would contribute to shifting the Serbian economy to the new growth model based on exports,
domestic savings and Dinar strengthening. The transformed public companies would contribute to
increasing the share of public sector in economy, losses and prices of public companies would
decrease through higher competition and their business efficiency and investments into
development improve. Additionally, by end of 2011 public companies would be ready to apply the
European competition rules in line with the SAA that came into force on January 1st, 2009.
Within a short period of time, corporatization of big public companies founded by the State
will be performed. The following public companies will change there legal form into a joint stock
company: EPS, Elektromreza Srbije, Transnafta, Srbijagas, PTT Srbije, Zeleznice Srbije, Aerodrom
Beograd, Srbijasume, Srbijavode. After that, deeper organizational and structural changes of these
companies follow, including the economically profitable privatization. This will reduce the share of
public sector in the Serbian economy which is currently at 40% and strengthen the role of private
sector that generates growth in domestic savings and exports as the key levers of Serbia’s economic
growth. The change in the legal form from PE to JSC, and the changes to the Law on Assets Owned
by the Republic of Serbia registration of capital as net value of property will be made possible. In the
next phase, efficiency and productivity of these big business systems will be increased through
organizational and business restructuring, while operating expenses and budget pressures will be
reduced. For that purpose, it is necessary to create a norm for costs and performance of these
companies which would enable better control of their operations. To improve efficiency of these
companies they will be privatized where this is necessary and useful, where different companies will
have different types of private capital (management contracts, increase in the share of capital, IPO,
sale of a stock package). On those grounds, it will be ensured that these companies become market
oriented and efficient companies.
54
To transform local public companies in respect of ownership, organization and business, a
restructuring and privatization strategy will be passed for such companies, Law on Public Utility
Activities, and changes to the Concession Law. Local governments will decide on privatization of
local public utility companies taking care of protecting public interest, using the positive experiences
of the transition countries. However, natural monopolies at the local level will not be privatized
(electricity network, water distribution network, etc.). This will ensure higher efficiency of local
public companies, reduce losses and redundant workforce and result in lower prices of services.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
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Liberalization of infrastructural activities. Privatization of state and local public companies
requires liberalization of infrastructural activities where competition can be introduced, in particular:
•
•
•
•
•
•
•
Production and distribution of electricity;
Fixed telephony, provided that adjustments to the tariff system are conducted and that
Telekom Srbija a.d. Company is modernized;
Transportation of people and goods by railway;
Certain postal services;
Air traffic;
Import of oil;
Certain public utility activities.
New companies and competition will be allowed to enter the area of infrastructural
character for the purpose of improving the functioning of these areas and improving the quality of
their products and services.
Public companies in the infrastructure area which have the character of natural monopoly
will not be privatized according to the majority principle, in particular: railway infrastructure;
transmission of electricity; international gas lines and oil lines.
Protection of Competition. Serbia did not achieve the necessary progress in implementing
the 2005 Competition Protection Law. A Commission for Protection of Competition was formed but
it did not have the necessary powers for efficient protection of competition in Serbia. Adoption of
the Law on Protection of Competition (July 2009) removes the deficiencies of the existing law and it
provides for the following:
•
Independent and efficient work of the Commission for Protection of Competition as a body
authorized to pass decisions on de-concentration and fines for violations of rules and
regulations in competition;
•
Legal security in the competition protection system, where all market players will have to
observe business contracts;
•
More precise provisions on horizontal and vertical agreements and on criteria for
determining the threshold for control of concentration, in order to facilitate the
Commission's activity of supervising market players and preventing misbalance of
competition through cartels and abuse of dominant position;
•
More precise provisions relating to the start of procedure in front of the Commission and
deadlines for their resolution.
The new law on protection of competition, harmonized with the EU regulations, will ensure
development of free competition in production and trade, lower prices formed freely in the market
and improved quality of products and services. Provisions of this law will provide for inclusion of
competition in infrastructural activities of common interest, i.e. de-monopolization of state and local
public companies.
Application of the State Aid Control Law as of 1 January 2010 is of particular importance for
the implementation of the competition policy, including the application of Public Procurement Act.
Stimulating export potential of companies. Boosting exports is the national economic
priority. As a relatively small and insufficiently developed country, Serbia should be more involved in
the global trade of goods, services, labor and capital and increase the share of its exports and
imports in GDP more significantly. The main task of the economic policy in the coming period is to
increase exports in order to increase production, employment and standard, and to reduce the risk
of insufficient inflow of capital on macroeconomic potential and economic growth, as well as to
ensure regular servicing of foreign debt. Higher export will be guided by faster growth of export of
products of higher level of processing, growth of export products of lower level of processing and
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
growth of exports into the EU and CEFTA region. Higher export would result in lower deficit in
foreign sector that may disturb the macroeconomic stability and lead to payment balance and
currency crisis. The growth of export would significantly contribute to establishing foreign
macroeconomic equilibrium, after a period of the current account deficit growth as a consequence
of structural changes.
Serbia’s export level lags behind the EU members due to insufficient competitiveness, which
leads to insufficient investments and lower level of GDP and export per capita. In the next mid term
period the transition process and approaching the developed countries of the EU will be accelerated.
For that purpose, it is necessary to raise export competitiveness and improve sector and
geographical structure of Serbia’s export. It is of special importance to increase the export potential
of processing industry and the level of finalization of export products, as well as geographical
diversification of export.
Special attention shall be paid to key export markets and to generating high export growth
rates based on the available raw material base for the groups of export products (basic metals, iron
and steel, wood and food industry), favorable geographical position (Corridors 7 and 10), dynamic
sector of small and medium enterprises and available human capital. For that purpose, conditions
will be created to strengthen big business systems that provide more export, better image of the
country in the world, more investments into the export sector, better export structure, development
of infrastructure, human capital development, political stability, geographical diversification of
export by conquering new markets, stimulating an inflow of foreign direct investments that are
export oriented, establishing an export support system in accordance with the timeline of joining the
WTO and EU.
Key structural measures for stimulating export are privatization of companies with social and
state capital that boost productivity and strengthen competitive position in foreign markets, efficient
service for exporters, increasing the number of clusters, strengthening economic diplomacy,
reducing administrative obstacles to export, improving product standardization.
Stimulating SMEs. Serbia made significant progress in strengthening entrepreneurship and
creating a competitive sector of small and medium enterprises by creating more favorable legal and
regulatory framework, easier access to financial institutions, training of entrepreneurs and
employees in this sector. According to the data from 2008, the share of SME sector in GVA is 59.1%,
67.2% in employment and 45.9% in exports.
In the next three years incentives for faster development of SMEs and entrepreneurship will
continue through implementation of the adopted Strategy for Competitive and Innovative Small and
Medium Enterprises and the Operative Plan for implementation of the strategy. The goal is to
develop a competitive sector of small and medium enterprises based on knowledge and innovation
which ensure growth of production, export and employment, as well as more balanced regional
development of Serbia.
Special attention will be paid to promotion and support of entrepreneurship and founding of
new small and medium enterprises through Greenfield investments and appropriate financial and
tax incentives, as well as to strengthening competitive advantages of small and medium enterprises
in export markets by increasing the level of knowledge, technological innovation, development of
clusters, networking with big business systems, introduction of European standards and qualities in
business.
56
1.2. Financial Sector
Priority reforms of the financial sector in the next mid-term period are:
•
Improvement of regulations in the financial system by adopting new and improving the
existing regulations;
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
•
Continued privatization of financial institutions where the state owns share in capital.
Key activities for improvement of regulations in the financial sector are as follows:
•
•
•
Adjustment of the Law on Banks, Law on the National Bank of Serbia and by-laws brought by
the Central Bank with the EU directives and Basel II recommendations;
Liberalization of capital transactions based on the law on foreign currency operations and
development of the foreign currency risk protection instruments market.
Passing new legal regulations from the area of financial leasing that will improve risk
management, as well as prudential supervision of the National Bank of Serbia.
Privatization of the remaining banks with the government’s ownership share will continue
based on the enacted Strategy for managing the shares of banks owned by the Republic of Serbia for
a period 2009-2012. Strengthening of corporate management, analysis of economic justifiability of
merging certain banks and increase in capital for the purpose of improving credit and other risk
management procedures, resolving the issue of bad loans and improvement of services to clients
will continue. In the final phase, when market conditions improve, the state will sell its majority and
minority shares in these banks. Reforms and privatization of the remaining banks with state share
packages will increase stability, efficiency and competitiveness of the banking sector in Serbia and
reinforce trust in banks.
In the area of financial markets, new legal framework will be enacted regulating the capital
market area, and it will be harmonized with the EU regulations, for the purpose of ensuring safer
and more stable development of the local capital market. To improve investor protection the
obligation of providing reliable and truthful information of companies whose securities are listed in
the stock market shall be regulated in more detail and more adequately, including better quality and
higher transparency of financial reporting on all important business facts of the stock-issuing entity.
The measures taken by the Securities’ Commission in the financial markets’ law enforcement
procedure shall be intensified and broadened.
The Banking Sector. Serbia achieved a significant progress in the reform of the banking
sector in all its segments. The required regulations were passed, and privatization of most state
banks completed. Also, consolidation of the financial sector was performed and a growth of balance
categories generated. Competition was introduced and quality of services improved.
Currently, in the Serbian market there are 34 banks. Thanks to the date to restrictive and
prudential framework of the National Bank of Serbia, the global economic crisis had a limited impact
on the banking sector, reflecting in the reduced number of employees therein (first time from the
start of reforms), general trend of asset quality worsening, and a lower profit thereof compared to
the previous years. That said, in 2009 there was a significant growth of deposits as a result of trust
into the Serbian banking system.
New law on banks will be acted upon that will improve the solutions of the existing law that
proved to be hardly applicable in practice, solutions from the neighboring countries will be
introduced that are to a higher extent harmonized with the EU regulations (Croatia, Slovenia,
Macedonia), provision of new financial services shall be liberalized and allowed to banks (financial
leasing, factoring, forfeiting), additional harmonization with the EU directives performed, a basis for
passing by-laws for introducing Basel II standard shall be provided.
Also, until the end of 2012 privatization of other banks in the majority ownership of the
Republic of Serbia is envisaged, yet one bank will remain in the country’s majority ownership. Also,
in the next two years the sale of minority share packages owned by the Republic of Serbia in banks
will continue.
Non-Banking Sector. Particular attention shall be paid to strengthening the core function of
the financial market relating to the real sector financing. Financial market stabilization and higher
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
liquidity, coupled with necessary legislative and regulatory reform, will result in lower risks
associated with real sector investments. In parallel with the reduction of risk, new sources of
demand will be activated in the financial market and this will result in the development and higher
liquidity of the financial market.
In cooperation with relevant institutions, activities will be taken over the following period to
create new financial instruments which are traded in the developed markets, in order to expand and
enrich the existing range of securities in the domestic financial market. This is expected to broaden
the scope for investment in the domestic financial market for national and foreign investors.
Expansion of the range of offered securities is expected to lower potential investment risk, thereby
boosting development of the financial market as a whole.
In order to strengthen Serbia's capital market and enhance the quality of traded securities,
large infrastructure enterprises must enter the stock exchange (Telekom Srbija, Naftna industrija
Srbije, Elektroprivreda Srbije, etc.). The entry of new companies into the regulated market would
provide high-quality market material, open for investments by institutional investors and the Serbian
citizens. From the viewpoint of those companies, their entry into a regulated market would enable
market valuation of their capital and open up a new channel for providing additional funding.
As a full member of the International Organization of Securities Commissions (IOSCO), Serbia
will strengthen the national financial market through regional and international cooperation, with
the aim of improving the quality of national regulations and increasing the supervisory capacity of
the national regulatory body. Furthermore, higher levels of professional knowledge and skills will be
acquired and the confidence of the public and investors in the financial market will be reinforced.
The insurance sector in Serbia is underdeveloped and by level of development (measured by
total premium and GDP ratio and total premium per capita) is significantly below the average of the
EU member states. The above points at a huge potential of the insurance market. Despite the global
financial crisis, the insurance market, measured by the premium growth, shows a positive, though
relatively slowed down trend (the 2009 premium compared to the 2008 premium increased by
2.6%). There are 26 insurance companies in the insurance market, out of which 22 companies deal
with insurance and four companies with reinsurance. Of the companies dealing with insurance, 7
companies deal with life insurance only, 9 companies deal with non-life insurance only, while 6
companies deal with both life and non-life insurance.
The Insurance Law governs the conditions and manner of performing insurance activities and
supervision over these activities. The solutions envisaged by this law are largely harmonized with the
EU regulations. However, there are some issues that have not been fully harmonized. These are
primarily related to the issues regarding the current insurance development level and economic
power of insurance companies. In that respect, changes and amendments to the Insurance Law are
planned that will further harmonize the law with the EU Directives from the area of direct (life and
non-life) insurance, reinsurance and additional supervision of insurance companies group.
58
A new deadline was set (31 December 2011) by which time insurance companies must
differentiate the life from non-life insurance operations. Also, undergoing the parliament procedure
are changes to the law that would facilitate management and operations of insurance companies
that are the subject of privatization. By end of 2009, changes and amendments to the Regulation on
identifying property and persons that may be insured with a foreign insurance company further
liberalized insurance services, by enabling insurance and reinsurance of the so called MAT
(MarineAviationTransport) risk with foreign insurance companies, and/or reinsurance, thereby
fulfilling this precondition for Serbia’s joining of the World Trade Organization.
By mid-2009 the Law on Compulsory Transport Insurance was enacted, governing the types
of mandatory transport insurance, providing for the founding of the Guarantee Fund and entrusting
public authority to Serbia’s Insurer Association. The main solutions in the Law have been fully
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
harmonized with the EU Directives in this area, while implementation of certain solutions was
postponed until Serbia’s joining the EU, both due to conditioning such solutions by EU membership
and economic potential of people and insurance companies. Solutions that are compliant with the
EU regulations will be fully implemented as of the date of Serbia’s joining the EU. Until then,
implementation of certain solutions is postponed, and transitory provisions envisage solutions to be
implemented in the transition period. In that respect and considering the novelties introduced by
the Law, changes and amendments to the Law are possible that will facilitate the transition period,
by changing individual provisions that caused negative consequences in the Law enforcement
practice (as for example insurance of so called “small” flying machines).
There are 17 financial leasing providers operating in Serbia - companies that the NBS issued
a permit for financial leasing operations. Even though the previous year, due to the global economic
crisis, was unfavorable for leasing companies, which caused a 9.2% drop in total balance assets and
an increase in outstanding receivables and the amount of returned leasing objects, the leasing
companies had a significantly higher net profit than in 2008, including other performance indicators
as well. Since the Law on Financial Leasing does not comply with the 2006/48/EC Directive, which is
one of the key legal acts of the EU governing the operations and supervision over credit institutions,
as well as “financial institutions” which, under Annex I of the Directive, comprise companies dealing
with financial leasing, enacting of new law is planned which, among other, will define financial
leasing in an essential manner, harmonize it with acquis communautaire to the level it governs this
matter, where particular emphasis will be on harmonizing the criteria for defining and regulating
leasing operations with the International Accounting Standard 17, and on defining financial leasing
as a service of financial intermediation, where providers of financial leasing will be deemed financial
mediators. The new law will provide for an adequate legal framework for identifying and managing
risks in operations of financial leasing providers and a quality prudential supervision of their
operations.
Capital market in Serbia in the time of crisis was marked by lower trading volumes in the
stock market, a drop of traded share values, a drop of investment units with the investment funds,
etc. Currently operating in the capital market there are 60 broker dealers, 19 authorized banks
licensed for stock brokerage operations, 13 custody banks, 19 investment funds and 9 voluntary
pension funds.
Preparation of a new law on capital market is ongoing, and it will further harmonize local
regulations with the EU legislation. New terms are introduced, the range of services offered by
investment firms is broadened, more comprehensive reporting obligations are envisaged for public
companies, control of market participants based on risk assessment, etc. To improve investor
protection the obligation of providing reliable and truthful information of companies whose
securities are listed in the stock market shall be regulated in more detail and more adequately,
including better quality and higher transparency of financial reporting on all important business facts
of the stock-issuing entity. Also, the measures taken by the Securities’ Commission in the financial
markets’ law enforcement procedure shall be intensified and broadened.
Special attention will be paid to the privatization of the remaining big socially-owned
companies which are undergoing the process of restructuring. To date 35 such companies were
privatized, and successful restructuring and privatization of several more such companies is
expected. The Government will continue to implement the special program of restructuring and
privatization of parts or whole companies in military industry and military-funded institutions.
In the area of pension and investment funds the regulations will be improved and
conditions created for better and more stable business of investment and voluntary pension funds
and a more significant growth of asset value and investment units of those funds.
Along the preparations of the new law on capital market, changes and amendments to the
Investment Funds’ Law will also be prepared, enabling investment funds to extend the range of
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
services they offer to individual client portfolio management as well. Also, to harmonize it with the
new law on capital market that will nullify the obligation of requesting a permit for custody bank
operations, the Investment Funds’ Law will include the necessary compliance for investment funds.
As part of the pension system reform, the Government adopted in April 2010 a proposal of
the Law on Changes and Amendments to the Law on Voluntary Pension Funds and Pension Schemes.
The proposed changes are related to the following: management company founder, fees and costs in
securities’ transactions, management company and management accountability, management
company financial statements, disclosures to the fund members and public, investment of the fund’s
assets and limitation of investments, pension schemes, drawing of and disposing of accumulated
funds, protection of rights and interests of the fund members, supervision and supervisory measures
over management company operations and penalty provisions.
1.3. General Government
The main goal of general government reform is to reduce the role of this sector in economy
and increasing it efficiency in generating general interests of the society, thus reducing the current
expenditures of the state and increase public capital investments.
In the next mid term period, fiscal policy will face stricter budget restrictions as a
consequence of date to procyclical fiscal policy and global economic crisis. In 2009 and 2010 fiscal
policy responded by freezing salaries in the real sector and pensions and by reducing investment
works and discretionary public spending. To achieve fiscal sustainability over a longer period of time
comprehensive structural reforms are necessary in key public services that provide for expenditure
reduction in all segments of public spending by improving public sector productivity. Fiscal impact of
these reforms will be felt in mid- and long term, and their most important effect is better quality of
public services.
Public sector reform in Serbia proved to be necessary due to low efficiency of all parts of
public sector and high costs to volume and quality of services that this sector provides to economy
and people, as well as due to the need to provide fiscal consolidation and long term sustainability of
public finances, with significantly lower expenditures of the public sector and higher quality of public
services. An active reform approach to the public sector in Serbia requires changes to the existing
tax system and reduction of the existing level of public spending. Otherwise, the level of fiscal deficit
would increase and public debt growth would accelerate, which implies that the fiscal capacities of
the tax system in Serbia is stabilized at the level comparable to other European countries and, to
match it, public expenditures should be adjusted and sustainable level of fiscal deficit and public
debt established, in accordance with the GDP level and growth. Such changes require strict fiscal
adjustment that leads to fiscal consolidation by reducing public expenditures and increasing tax,
particularly indirect taxes. Reduction of public revenue resulting from cancelling customs duties
towards the EU, reduction of income tax rate and capital tax and increasing the non-taxable portion
of salary, a move from the lower to the higher GVA, reduction of domrstic demand in relation to
GDP, reduction of employment, require fiscal adjustment on the expense side and fiscal discipline
strengthening.
The priority areas in the general government reform in the next mid term period include:
pension system reform, health care system reform, educational system reform, social welfare
system reform and subsidies’ system reform.
60
The Pension System Improvement. Pensions, as the single largest government expenditure
were frozen in 2009 and 2010, which is a short-term effective measure. Long term sustainability of
the government pension fund requires reducing pension costs that are high due to various
mechanisms that stimulate early retirement, low average age of persons who retire and lower
number of years of paying contributions, as well as the demographic aging and low birth rate, which
increase the number of pension beneficiaries in relation to employees who pay the contributions.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
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The pensions are frozen until April 2011 which will reduce the ratio between average
pension and salary in that period. Reducing pension costs requires limiting the number of years
before an employee may retire early, reducing pensions for the early retired persons, irrespective of
the years of paying the contributions, increasing the age limit for retirement, improving contribution
and pension administering. Sustainable replacement level requires an appropriate pension indexing
system, aiming to exceed pension payments by pension contribution inflows on salaries with real
growth.
Health System Improvement. Key goal of the health system reform is to improve
productivity of health care system by changing the date to system of financing based on input that
generates inefficient use of health resources. The reformed health financing system will include
incentives for increasing the volume and quality of health services. For primary care it is envisaged to
introduce a pay-per-patient system, while in hospital care it would be a performance based payment
system. This would increase efficiency of primary and hospital health care and provide significant
savings while reducing corruption in the health system and reduce public spending for health to a
level comparable to the European countries measured by share in GDP, and the health results would
be significantly better.
Educational System Improvement. The key goal in educational system reform is to increase
the level of knowledge to the level of other European countries, while keeping the level of public
spending for education which is already comparable to other EU countries. Major savings can be
achieved through rationalization of school network, especially on the primary education level,
without it affecting the quality of primary, secondary and university education. Significant cost
reduction for education will be provided by merging the classes with insufficient number of enrolled
students and by transferring students to other classes within the school and among schools, and by
matching the number of primary and secondary school teachers to the number of students. For this
to happen, local communities need to participate actively. The number of classes and teaching staff
will match the rate of student enrollment into primary and secondary schools, thus generating
significant savings.
Social Welfare System Improvement. The programs of family welfare and child allowances
will continue and the level of public spending for social welfare will increase, as well as its targeting
of poor households that would be at a level comparable to other European countries. The level of
public spending for social welfare programs will increase with a view to reducing poverty, growth of
population and assisting endangered social groups. Greater financial support will be provided in the
form of family welfare (FW) for families with low income based on identified material condition, thus
raising the costs of FW to a level comparable to other European countries. Similarly, child allowance
costs will be raised for children from families with low and lower-medium income. Other types of
social welfare will be harmonized with the European standards in the area of pregnancy leave wage,
veteran benefits, parent birth allowance, allowance for assisting and caring of another person.
Subsidies System Improvement. State aid control system will be established in line with the
State Aid Control Act to ensure that market position of companies through state subsidies is not
disturbed in relation to their competitors. The goal is to fully harmonize all types of state aid with
the state aid regulations (subsidies to companies and sectors undergoing restructuring, subsidies to
state companies and institutions performing public interest activities, granting tax reliefs for new
investments, in free trade zones, in undeveloped regions, subsidies for agriculture in hill and
mountain areas, etc.). This would discourage state subsidies for covering operative expenses of
companies, and strengthen state subsidies for horizontal purposes and for regional goals, including
special sectors in industry, provided that their share in GDP is comparable to other European
countries.
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The system of subsidies for agriculture will be improved and made effective in improving
agriculture and reducing rural poverty. Subsidies per acreage should be objectified and material
position of fixed fee beneficiaries should be checked.
Subsidies for companies will be reduced to include only those companies that have a
potential to survive in the restructuring and privatization process. Subsidies to companies in the
form of tax write-off and subsidized or unpaid loans to private investors will be disabled.
Subsidies for public companies with state capital will continue, provided that they reduce
operating losses and invest into improving public service in certain areas (railway, post, mining, etc.).
2. Sector reform guidelines
2.1. Labor market
Employment policy. Active employment policy will be taken in the following mid term period
focusing on:
•
•
•
•
•
•
Opening new job positions, reducing the negative effects of the economic crisis on jobs and
increasing formal employment;
Stimulating employment of harder-to-employ persons, such as long term unemployed,
unemployed without qualifications or with low qualifications, redundant employees and
youth employment;
Strengthening the labor market institutions’ capacities, the role of social partners and
cooperation with countries in the region, and providing support to reducing regional
differences and informal employment;
Equalizing the position of women and men in the labor market;
Creating conditions for social inclusion and employment of persons with disabilities, Roma,
refugees and displaced persons, returnees under the Readmission Agreement, victims of
trafficking and material welfare beneficiaries;
Development of human resources by improving the education and training system and
matching them to the labor market needs.
In addition to the above employment policy programs and measures, attracting more people
to work and their retention at work will have a significant role as well, including an increased
demand for workforce and workforce activity rate, workforce competitiveness improvement, social
protection system modernization, and stimulating worker adaptability to changes.
Active employment policy measures focused on increasing and improving employment will
be as follows:
•
•
•
•
•
•
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Support to self-employment by providing funds and expert assistance to the unemployed
who wish to become self-employed and job intermediation for job-seekers;
Professional orientation and career planning advice;
Employment subsidies for employers in the private sector and who employ the unemployed
in new jobs;
Additional education and training for acquiring new knowledge and skills for creating
employment and self-employment prospects;
Incentives for cash compensation beneficiaries;
Public works.
Occupational safety and health. In the next mid-term period national legislation in the area
of occupational safety and health will be harmonized with the EU directives and ILO conventions and
improved to reduce the number of injuries at work and professional illness.
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Labor inspection. Labor Inspection Law will be adopted, which would improve institutional
framework of employees' rights protection in the area of work relations. A law will be adopted that
will amend the Labor Law, a new Labor Records Law and Strike Law.
The strengthening of administrative capacities of the Labor Inspectorate will continue
through reform of personnel, including implementation of information system and improving
technical capacities. The goal of labor inspection reform is to abolish traditional supervision methods
and introduce an integrated method which enables higher coverage of economic operators with
inspectors' presence and more frequent visits by supervision authorities.
2.2. Commercial Activities
Mining. Measures and activities that will be taken in the following mid-term period in the
mining sector will be focused on establishing competitiveness and finalization of the transition. The
objective is to improve competitiveness of this sector, increase security and safety of people and
provide conditions for higher inflow of foreign capital into the existing and the new capacities,
opening new mines and development of the existing ones, while applying knowledge, world
standards and modern technologies, and survival of those areas where mining is the core economic
activity. This will be defined by the Strategy for Development of the Mineral and Raw Materials
Complex, while the law on research and exploitation of minerals will regulate the whole process
regarding the minerals.
A strategy for reform of mines with underground exploitation will be passed with a view to
developing the mines that have the reserves, while conditions will be created for the mines that do
not have reserves to close them gradually over the next five years. The essence of reforming these
mines lies in a strategic partnership based on attracting foreign investors who would invest into
building thermal plants, after which the state would become a strategic partner to the mines.
Energy. In accordance with the Energy Development Strategy of the Republic of Serbia until
2015, the main priorities of energy development are as follows:
•
Continued technological modernization of the existing energy facilities/systems/sources;
•
Rational use of quality energy-generating products and raising energy efficiency in
generation, distribution and use of energy by end users;
•
Use of new renewable energy sources (NRES);
•
Investment into new electricity sources, with new gas technologies;
•
Building new energy infrastructure facilities and electricity and heat sources.
By end of 2011 the energy development strategy will be passed for a period until 2025 with
projections until 2030, in line with the Energy Law, to ensure safety of energy supply. The strategy
will define:
•
•
•
•
•
•
Strategic goals and priorities of energy sector development;
Energy transit potentials;
Energy development projections until 2025, and 2030;
Energy efficiency improvement pathways in energy generation and consumption sectors and
use of NRES;
Pathways for further energy development in the area of electricity, oil and gas, underground
and surface exploitation mines, combined generation of electricity and heat, heat
generation;
Necessary funds, legal, technical, technological, institutional and other mechanisms for
achieving these goals, and timeline for their achievement.
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National gasification program will be passed that will include a preparation of
interconnection with the neighboring countries with a view to providing continuous supply of gas to
all countries in the region.
Industry. In the coming period active industrial policy will be undertaken focusing on the
following:
• Forming efficient and competitive industry structure;
•
Establishing knowledge- and innovation-based structure of economy;
•
Reducing regional and inter-regional differences;
•
Adapting industrial sectors to the principles of environmental protection;
• Completing the privatization process, accompanied by efficient restructuring of big industrial
companies.
Priority in industrial development will be given to the sector that will ensure reaching higher
growth rates, such as: manufacturing of electric equipment (radio, TV and telecommunications
equipment); manufacturing of motor vehicles and automotive components; and information
technologies.
The strategy and policy for industry development in Serbia for a period 2011-2020 will be
passed and it will define key development and sector priorities of the Serbian industry. The Strategy
will be based on stimulating investments and strengthening entrepreneurship by removing
administrative barriers.
Agriculture and Rural Development. The main goals of the agricultural and rural
development reform in the next period are:
•
Higher competitiveness and efficiency of the agricultural sector;
•
Provision of quality and safe food for domestic consumption and export;
•
Support to sustainable rural development;
•
Protection of the environment from harmful effects of agricultural technology processes;
•
Preparation for WTO accession and EU association.
•
Reform of the cooperatives’ sector.
The national agriculture program of Serbia for a period 2010-2013 will define short term and
mid term goals of agrarian policy, the manner, sequence and deadlines for accomplishing these
goals, expected results, form, type and purpose and volume of individual state incentives.
The Strategy of Rural Development and National Program of Rural Development will define
the basis of the rural development policy, rural areas and categorization criteria according to the EU
model.
Forestry. The objectives of the policy in the field of forestry are: ensuring the economic,
environmental and social functions of forests, increasing the contribution of forestry to the overall
economic development, adequate protection and forest maintenance, improving their condition,
raising new forests and developing forestry as a branch of the economy. The Law on Forests governs
the keeping, protection, planning, breeding, using and disposing of forests and forest land. Economic
and other measures will ensure equality between all forms of ownership of forests in terms of legal
protection, financial support and adequate organization.
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Water Management. By the National Strategy for Water Management Development and
Law on Waters the main goals of water management development and prioritized projects with
national relevance will be defined and the project owners, sources of funding, financing models and
implementation schedules for such projects will be defined. By applying the “beneficiary pays” and
“polluter pays” principle, stable financing and maintenance of facilities, systems and development
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will be ensured. Public water management companies will be restructured. Funds will be provided
for investments into the public utility infrastructure for water supply, including regional systems as
well, revitalization of the existing and construction of new facilities and water supply and water
protection systems, as well as construction, reconstruction and refurbishment of hydroimprovement facilities. Special attention shall be paid to the construction of flood-prevention
facilities to improve the protection of cities and towns located along large water courses.
Transport. The main goal of the transport policy in the next three year period is to increase
the scope and quality of transport services and efficiency of all types of transport. To achieve that
goal:
•
Rationalization of the existing railway network will be performed;
•
International cooperation will be improved, especially with countries in the region;
•
Activities will be focused on infrastructural development;
•
The share of inter-modality transportation will increase in the overall transportation of
goods by more intensive use of river and railway transportation;
•
The works on constructing the Corridor 10 will be intensified, including another two road
strips towards the south, road ring around Belgrade and part of highway near Pirot, which
will be funded from the NIP and international financial institutions.
To modernize roads and to build new modern roads, international loans and funds from the
sale of Telekom will be used. For that purpose a Master Plan for Road Infrastructure Development
until 2020 was passed.
Communications and Information Society. One of the main goals in the next mid term
period is an accelerated development of communication and information infrastructure. To achieve
that goal, activities will be focused on further liberalization and provision of competition,
improvement of the rule of law, improvement of the regulatory framework transparency and
acceleration of the European integrations.
In accordance with the Strategy with an Action Plan for transferring from analogous to digital
broadcasting of television program, a new network for digital broadcasting will be designed and
built, the socially endangered citizens will receive the so called set-top box for digital format picture
for free and the promotion campaign will be intensified in order to inform the people of transferring
to the digital TV program as of 4 April 2012.
In the following three-year period development of broadband Internet will be simulated. The
adopted Strategy for Development of broadband internet access in the Republic of Serbia with
Action Plan will provide for compensating the lagging behind the EU in this area, attract foreign
direct investments, intensify economic growth and ensure progress of e-health, e-education and egovernment.
To ensure an accelerated and dynamic development of telecommunications and electronic
communications, and to simplify operations in the e-communications market, a strategy for
development of e-communications in the Republic of Serbia from 2010 to 2020 will be passed. The
strategy will define the main activities for accomplishing the e-communication development policy
until 2020 and measures that will ensure implementation of new technologies.
In line with the Strategy amending the Strategy for postal services development in Serbia, a
public postal operator (PPO) will be formed and equipped for independent operation in the market.
By end of 2012 the PPO will be granted an exclusive right of performing the reserved postal service
within the limits and in line with the degree of liberalization.
In the course of 2011 the methodology of calculating postal services on a cost principle will
start to apply, and after 2012 full liberalization of postal services will follow.
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Trade and Services. In accordance with the trade development strategy, a goal in this field is
the development of an institutional environment for sustainable development of trade and services,
which should reach the EU average as a share of GDP. Overall transactions of goods and services and
behavior of transaction parties will be regulated by the Trade Law.
Mid-term objectives in the field of trade and services include:
•
Creating a developed internal goods and services market that is characterized by equal
regional presence of modern trade and safe products of European quality;
•
Protection of competition in accordance with the EU standards;
•
Consumer protection according to European standards;
•
Strengthening competitiveness of goods and services;
•
Ensuring market stability.
The Trade Law, in accordance with the EU rules, governs trade in goods and services, trade
conditions, new types and modes of trade (long distance trade, personal offering trade, auction and
stock market trade), unfair market game, trade limitations, trade improvement and trade
supervision. Particular attention will be paid to the development and positioning of Serbia's national
brand, which should make Serbia readily recognizable.
Consumer Protection Law will be passed, and it will harmonize the reach of consumer
protection with the European consumer right and create legal bases for implementing consumer
protection instruments that exist in the developed EU countries. Norms regulating consumer
information and full consumer protection will be defined.
Tourism. The goal of tourism policy is to increase attractiveness and competitiveness of
tourist destinations, to establish an efficient system of destination management and to generate
USD 1.5 billion of foreign currency inflow from tourism. Privatization of state-owned tourism
companies, renovation of tourism facilities, improvement of tourism management and marketing
and enhancement of tourism offers will continue. By 2012 tourist and public utility infrastructure will
be constructed in the priority tourist destinations.
In the next period, special attention will be paid to sustainable development of tourism in
order to protect, improve and rationally use the space and resources and to ensure equilibrium
between environmental protection and economic development. Sustainable tourism implies
activities that have insignificant negative impact on the environment.
NIP funds will be used to develop an information system which would enable faster flow of
information between tourism organizations, agencies and beneficiaries and which would present
their offering to the world.
2.3. Social Activities
Education. Key objectives and guidelines of the education system reform in the following
mid-term period will be based on the Education System Reform Strategy on all levels. The main goals
of the Education System Reform will be based on the principles of lifelong learning and the
educational standards of the EU. Key objectives of the education system reform in the following midterm period include:
•
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•
•
Acquiring quality knowledge and skills in the area of linguistic, mathematical, scientific,
artistic, cultural, technical and computer literacy with the forming of value attitudes;
Development of creative, intellectual, emotional, social, moral and physical ability of every
child and student to match his/her age, development needs and interests and practicing
healthy lifestyle;
Development of abilities to use information and communication technologies;
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•
•
•
•
•
Development of self-awareness, self-initiative, self-valuation ability, learning motivation and
expressing of one’s own mind;
Enabling students to make valid decisions regarding choice of their further education and
occupation, own development and future life, solving the problems and networking,
applying knowledge and skills in their further education, professional work and everyday life;
Development of communication skills, dialogue skills, quality and efficient cooperation with
others and team work skills;
Respecting and cherishing the Serbian language and mother tongue, tradition and culture of
the Serbian people, national minorities and ethnic communities, other nations and
development of multiculturalism;
Respecting race, religion, gender, sex and age equality, tolerance and appreciation of
diversity.
Strategic goal in the next mid term period is to increase the number of scientific,
professional and artistic new generation and highly educated professionals, as well as a
comprehensive action that would create a stimulating environment for keeping our graduates in the
country.
In order to carry out the objectives of the education reform fully, professional education of
teachers will continue by introducing modern curricula and textbooks, by translating quality foreign
teaching materials, as well as by equipping multi-media workshops for the purpose of better data
collecting and processing.
Science. Fast and strong commitment to the economy of knowledge and development of
technological and scientific capacity has no alternative at the start of the 21st century. Yet, it is
important to define a legal framework for co-financing the technological development program
between the state and the private sector. Special attention will be paid to bilateral and multilateral
programs that include the countries of South-East Europe. In order to raise the quality of scientific
researches and to ensure faster application of the research results, a Strategy for Scientific and
Technological Development of the Republic of Serbia for the 2010-2015 period was adopted.
Investing into science and technology is the only way of establishing sustainable economy
and society, the final goal being establishing a national innovation system. The goal is for the funds
allocated to science, without infrastructure to reach 1% of GDP by 2015. To make a breakthrough in
science and technology and become an innovative country, Serbia needs to define its national
priorities. The strategy of scientific and technological development suggests focusing on the seven
national priorities:
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•
•
•
•
•
•
Biomedicine;
New materials and nano-technology;
Environmental protection and climate changes;
Energy and energy efficiency;
Agriculture and food;
Information and communication technologies;
Improving the passing of government decisions and affirming national identity.
Implementing the Strategy through partnership and system improvement is as important as
the strategy itself. To implement the Strategy successfully, a strict implementation monitoring
system must be in place. The proposed changes and amendments to the law governing scientific and
research activity will provide for implementation of strategic national priorities in the area of science
and technology. The Law on Innovations and Law on Research, as well as their changes and
amendments, ensure rationalization of the existing network of scientific and research organizations
and harmonization of standards of scientific and research work with the EU standards in this area, as
well as improving conditions for scientific researches and innovations.
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Culture and the Media. To establish modern relations in the area of culture and media,
equilibrium will be sought necessary for developing artistic creation and protection of cultural
heritage, by joint efforts of public, private and non-governmental sector. In the area of culture a
culture development strategy will be passed which will serve as a base for defining priorities in the
development of this area, while separate laws will be passed for individual areas of culture.
In order to create conditions for preserving the cultural heritage, the following laws were
passed: Law confirming the framework convention of the European Council on the value of cultural
heritage for society and Law confirming convention on preserving non-material cultural heritage.
In the area of media, media development strategy will be passed based on the media market
study and legal framework, and harmonization of standards in the area of public informing with the
EU standards will be performed. In line with the guidelines defined in the strategy, public media
companies will be transformed and media regulations harmonized with the obligations arising from
the Stabilization and Association Agreement with the EU and standards of the Council of Europe, to
guarantee the freedom of thought and expression, and the freedom to ask, receive or spread
information and ideas by speech, in writing, by picture or otherwise.
Youth and Sports. In the next midterm period the activities focused on finding a system
solution to the position of youth in various areas of social life will continue. The National Youth
Strategy defines the following general objectives for youth development:
•
•
•
•
•
•
•
Stimulating young people to participate actively in the society and providing conditions for
their participation in decision making;
Constructing a youth informing system and creating equal opportunity conditions;
Stimulating exquisite results of youth in different fields;
Improving the conditions for active leisure hours of the young and increasing their safety;
Developing an efficient system of formal and informal education to match global education
trends, available to all young people;
Encouraging and stimulating all forms of employment, self-employment and
entrepreneurship of young persons;
Maintaining and improving health of young people and supporting the activities aimed at
sustainable development.
Key priorities identified by the Strategy of Sports Development in the Republic of Serbia for
the period 2009-2013 are:
•
•
•
•
•
•
•
•
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Establishing a system and mechanisms for improving the scope of sports practice of all
citizens;
Creating conditions for top athletic achievements and providing better conditions for
professional sports;
Development of recreational and school sport and physical culture;
Developing sports among children and youth and developing, equipping and maintaining the
necessary sports facilities;
Availability of sport school and camp programs to the most talented young athletes;
Improving professional work in sports;
Preventing negative manifestations in sport (doping, violence and inappropriate behavior)
and improving health care of athletes;
Improving conditions for a massive participation of the disabled persons in sports activities.
To improve health protection of athletes and prevent negative events in sports the Law
Confirming the International Anti-Doping Convention in Sports and Law on Preventing Violence and
Inappropriate Behaviors in Sports Manifestations will be enforced and implemented. Law on Youth,
as well as new Law on Sports will be passed defining more precisely that sports and sport activities
ensure physical, mental and social benefit of citizens. A system approach shall be adopted in dealing
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with the issue of privatizations in sports, thus regulating the ownership relations in sports clubs and
the issue of sports event funding.
2.4. The Pension System
The pension system reform will continue with a view to creating a long term sustainable
system that will not jeopardize the country’s macroeconomic stability. This implies changes to the
Law on Pension and Disability Insurance toward gradually increasing the minimum age limit for
retirement for men and women (from 53 to 58 years of age) until 2020 and gradually increasing the
necessary work experience for retirement for women (from 35 to 38 years). Occupations with the
right to a beneficial work experience will be strictly restricted. Conditions for granting family
pensions will grow stricter. These measures will be gradually introduced, to be fully in force by 2020.
To stimulate voluntary pension insurance, the Law on Voluntary Pension Funds and Pension
Schemes will be changed. The changes are primarily related to shifting the age limit for withdrawing
the accumulated funds from 53 to 58 years of age. The one-off amount of accumulated funds that
can be withdrawn will be limited to 30% of funds in the account. To stimulate the citizens to invest
into the funds, an option will be introduced to use the fund member’s assets as a guarantee when
buying the first ever apartment.
Changes to the Law on Voluntary Pension Funds and Pension Schemes will be extended to
comprise an option of investing the funds’ assets into short term debt securities and into investment
units of open investment funds operating in Serbia and in the EU and OECD countries, which will
facilitate the operation of voluntary pension funds in Serbia.
2.5. Health
The aim of the health system reform is to ensure quality of health services and patient
safety, while forming appropriate health care workers and instituting a sustainable financing system
in accordance with the society’s material means.
The main goals and pathways of health care development in the next period will be defined
by Health Care Development Plan of the Republic of Serbia. The plan will ensure health system
development in accordance with an overall development of the country and maximum utilization of
all health resources. Introduction of information technologies in this area will continue, which will
provide for integrating all levels of health care, better throughput of patients, higher quality of
health services, better availability and equality in provision of health services. This will contribute to
efficient management of health institutions at all levels, better monitoring of service quality and
better planning of health costs. Changes to the Health Insurance Law will provide for the start of
implementing the pay-by-performance system in health centers and by diagnostically similar groups
in hospitals.
Drugs and Medical Supplies Law governs, in accordance with the directives and other
regulations of the EU, conditions and procedure for issuing permits to release a drug and/or to
register drugs in the registry run by the Serbian Drugs and Medical Supplies Agency, production and
sale of drugs and medical supplies, supervision in these fields, work of the Serbian Drugs and
Medical Supplies Agency, and other issues of importance for drugs and medical supplies.
Health functions will be funded in part from public sources in line with the agreed upon midterm framework, observing international standards, and in part by introducing a new system of
funding from compulsory health insurance which will be based on the system of charging for the
provision of health services to a number of patients.
Accreditation of health institutions in Serbia will continue to improve their work and patient
safety and to create a just, sustainable, highly efficient health care system where health care
providers are stimulated to achieve ever-growing efficiency and quality standards.
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2.6. System of Social Protection
The Law on Social Protection will define the social protection system and define goals,
principles, rights and social protection services, forms of social protection service provision, rights
and duties of beneficiaries, supervision over the social protection institutions and other social
protection service providers, the procedure for using the services and exercising the title to material
support, funds for achieving and financing social protection.
Social protection measures will be focused on improving the quality of life of sensitive
groups of citizens, which will be ensured by simplifying the procedure for beneficiaries to receive
their rights and by providing assistance within the scope necessary to ensure a minimum living
standard of that part of population.
The social protection system reform also means strengthening the capacity of institutions on
the local level, and taking over responsibility for meeting people's needs in this area. Funds for this
will be provided from original revenue of local government bodies. Funds from the state budget will
be made available only for those municipalities that cannot meet the minimum rights in social
welfare from their own revenue.
2.7. Administrative Reforms
Public Administration. The main objectives targeted by the public administration reform in
the next mid-term period include development of a democratic state based on the rule of law,
responsibility, transparency, cost-effectiveness and efficiency. Another objective is to develop a
public administration focused on the citizens, capable of providing high-quality services to the
citizens and the private sector at reasonable costs, as well as combating corruption in the public
sector. To achieve the above goals in the coming period, the Government will be guided by the
following principles:
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•
•
•
•
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The principle of decentralization which entails transfer of certain activities from the level of
central government administration to the lower levels of authority, which is why in the next
period there will be intensive trainings of employees in the local government units;
The principle of de-politicizing of public administration refers to clear division of tasks which
are in the domain of politics and those in the domain of profession, and which are
performed by top government officials;
The principle of professionalization refers to forming a well trained, responsible and efficient
public administration, with continuous training of government officials, development of
systematic programs of general professional education, as well as training in the field of
European integrations;
The principle of rationalization aims at creating an optimally organized government
administration that will provide a satisfactory quality of services efficiently and promptly,
while engaging the minimum necessary number of staff, in order to reduce total
expenditures for its activities;
The principle of modernization entails technical and technological modernization of public
administration bodies’ activities through introduction of modern information and
communication technologies, which will enable introduction of electronic business and
electronic signature in the work of public institutions, as well as development of egovernment.
Reform of the legislative framework that will create a legal base for applying and creating
the above principles is an initial step on the road of system changes, while permanent monitoring of
law enforcement effects, with active participation of all relevant social entities is the principal
mechanism that provides a dynamic reform process and its permanent matching with the real
needs, and removing the spotted weaknesses and deficiencies. In the next period laws will be passed
that will regulate work and legal status of officials in local government units. This will establish a
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legal framework for decentralization of power, fiscal decentralization and development of a
professional and depoliticized public administration.
Police. Police reform is among the priority tasks within the framework of the EU association
process. In addition to harmonization of legislation, police reform includes streamlined organization
of the whole force and its modernization, setting up of an efficient, flexible and economical police
education system for training of police officers of all levels and profiles throughout their working life,
further strengthening of internal control mechanisms, of legality, of professionalism and of
accountability of all officers. The objectives of police reform are: to ensure a high level of personal
safety and safety of property from all kinds of harassment, to maintain stable public order and to
preserve the favorable security situation in the Republic.
Prioritized strategic tasks of the police system include combating organized crime, increased
rate of resolved cases, preventing attempts at destabilization in certain segments and in the society
as a whole, completing the activities aimed at creating a modern border management system,
strengthening of internal control and implementation of external supervision, building of capacities
for crime investigation, modernization of ICT equipment and development of police education.
The reform in the area of administrative affairs is of special importance. This reform includes
providing for an easier and faster exercise of rights, obligations and interests of citizens, as well as
modernization and improvement of work organization and methods applied by public bodies. Global
technology trends will be followed and efficient protection of documents against forging will be
introduced as a precondition for Serbia's European integration.
Judiciary. In the next midterm period, in accordance with the National Judiciary Reform
Strategy, the main goal of the judiciary system reform will be to institute the rule of law and legal
safety and, accordingly, to return the trust of citizens into the judiciary system. The reform of
judiciary will continue to focus on strengthening independence, accountability and transparency and
on achieving higher efficiency and promptness in work, modernization of obsolete infrastructure and
improvement of work conditions and introduction of modern information technology, which
requires stable and real sources of financing. The objectives of the judiciary system reform in the
following mid-term period include:
•
Thorough reform of legal regulations;
•
Harmonizing the regulations and procedures with the European standards;
•
Personnel changes in the judiciary;
•
Improving the material position of employees in the judiciary, as well as work conditions;
•
Education of judiciary function owners and employees in the court administration;
•
Efficient judiciary based on the principles of accountability and professionalism.
In accordance with the Regulatory Reform Strategy in the Republic of Serbia for the period
2008-2011, there will be comprehensive reforms of regulations. This will result in an immediate
cancellation and change of inefficient regulations which will improve business environment, reduce
legal insecurity and increase competitiveness of local companies in the global and European market.
To round up the reforms in the field of the judiciary, new laws will be passed in the area of
judiciary in the next period, namely: Law on the National Judiciary Training Institute (Judiciary
Academy), Law on Litigation and Executive Procedure, Law on the Bar, as well as the Law on Public
Notaries. In accordance with the short-term priorities of European Partnership, a Public Notaries
Chamber will be formed.
In accordance with the extended competences of the public importance information trustee,
the key role in enforcing the Personal Data Protection Law will be with an independent body which
will supervise and guarantee application of the national legislation in this area.
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Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
2.8. Other Reforms
Regional Development. The main goal of the regional development policy in the next period
is a balanced regional development. Active regional policy entails infrastructure development
measures, incentives (business environment – industrial zones and business incubators, favorable
loans) and training human resources for the implementation of development projects.
In the next period, activities will be focused on Regional Development Law Enforcement and
passing and enforcing the envisaged by-laws. The new Regional Development Law envisages that the
Republic of Serbia has five regions, which implies establishing of an institutional and financial
framework; passing the development documents (national regional development plan, regional
development strategy, regional development financing programs and other development
documents), and identifying the measures and incentives for a balanced regional development with
active participation of all regional development subjects envisaged by the Law.
In the next period, the National Regional Development Agency will play a significant role in
providing support to regional development agencies and the small and medium enterprises sector.
The Agency will deal with coordinating infrastructure projects important for the regional
development and preparing and implementing projects of national interest that are financed from
the EU funds.
Environment. Based on the Law on Environmental Protection and Strategy for Sustainable
Development of Serbia, the following strategies will be adopted: national strategy of sustainable
usage of natural goods and resources and national strategy for the protection of biological,
geological and landscape diversity of the State.
The scope of environmental pollution fees and natural resource usage fees, as well as waste
disposal fees will be reconsidered and, if needed, extended. Incentives will be provided to
companies that introduce or are working under the efficient resource usage regimes. Industrial
sectors will be stimulated to apply good practice in environmental protection and the cleaner
production principles.
Religion. Key objectives in the following mid-term period include: Improvement of religious culture,
religious freedoms and tolerance, cherishing religious pluralism and religious tolerance and
improvement of religious education, protection of religious, cultural and national identity,
improvement of the financial and social status of priests and religious clerks, improvement of
general cultural standard of people by building, maintaining and reconstructing religious facilities,
devising of a system and permanent resolution for the issue of health and pension insurance of
priests and religious clerks.
Diaspora. The policy of cooperation with the Diaspora (emigrants) will be focused on reinforcing all
possible ties between the emigrants and their home country, preservation of national and cultural
identity of Serb emigrants, promotion of economic, scientific, cultural and other relations between
the emigrants and the home country and encouraging and channeling the professional and financial
potentials of emigrants for the benefit of Serbia's economic development. For that purpose, the
following programs will be adopted: improvement of economic cooperation with the Diaspora in
order to improve the position of the Diaspora; promotion of the Serbian culture in the Diaspora;
learning Serbian language in the Diaspora.
72
Particular importance will be attached to activities focused on pooling the economic
potential of the Diaspora for the benefit of Serbia's development, primarily through investments. An
issue of vital importance will be how to devise possibilities for municipal investment through the
enhancement of overall investment and business climate in cooperation with the local communities
whose territories are home to large emigrant populations.
Civil society organizations. In accordance with the Law on Associations, governing the
Constitutionally guaranteed freedom of associating, the process of civil society organizations
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
development will continue in the next period. By founding the Civil Society Cooperation Office a
legal framework was created for the non-governmental sector to operate within. The tasks of the
Office in the coming period are: establishing a permanent dialogue between the state, associations
and other civil society organizations regarding the issues of general and common interest;
strengthening inter-sector cooperation, especially in the area of human rights, establishing the rule
of law, social protection, reducing poverty, sustainable development, education, etc.
To protect the social interests of its citizens, Serbia will be allocating grants to nongovernmental organization as budget permits.
73
| August 2010
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012 and
2013
V FINAL PROVISIONS
A constituent part of this memorandum is: Appendix 1. Forecast of macroeconomic
indicators for the period 2011-2013, Appendix 2. A summary of requests by budget beneficiaries and
identified limits for 2011, Appendix 3. A summary of requests by budget beneficiaries and identified
limits for 2012, Appendix 4. A summary of requests by budget beneficiaries and identified limits for
2013.
Memorandum on the budget and economic and fiscal policy for 2011 with forecasts for 2012
and 2013 will be revised by 1 October 2010.
This memorandum is to be delivered to all ministries and special organizations.
05 No:
In Belgrade, on 20 August 2010
THE GOVERNMENT
FIRST VICE PRESIDENT OF THE GOVERNMENT DEPUTY OF THE GOVERNMENT’S PRESIDENT
Ivica Dacic
74
| August 2010
Projections of the macroeconomic indicators in the period from 2010 to 2013
Table 1 : Growth and associated factors
Percentages unless otherwise indicated
2009
2010
2011
2012
-3,0
1,5
3,0
5,0
5,5
2.881.099,0
3.073.456,0
3.314.445,0
3.626.335,0
3.986.466,0
3. GDP deflator
9,1
5,1
4,7
4,2
4,2
4. Consumer prices (annual average)
8,4
5,1
4,5
4,3
4,1
5. GDP in mill EUR
30.670,0
30.172,0
32.281,0
34.785,0
37.862,0
6. GDP in mill USD
42.702,0
40.339,0
43.127,0
46.612,0
50.735,0
7. GDP per capita in EUR
4.190,0
4.138,0
4.445,0
4.809,0
5.256,0
8. GDP per capita in USD
5.833,0
5.533,0
5.939,0
6.444,0
7.042,0
-5,5
-3,1
0,5
1,1
1,6
1. Real GDP growth rate
2. GDP growth at current market prices (mill dinars)
9. Employment growth
2013
10. Labour productivity growth
2,7
4,7
2,5
3,8
3,8
11. Investment ratio (% GDP)
16,6
17,1
18,3
19,6
21,3
Sources of growth: percentage changes at constant prices
12. Private consumption expenditure
-4,7
0,6
2,7
3,2
4,0
13. Government consumption expenditure
-6,1
-4,2
-1,3
0,4
0,1
14. Gross fixed capital formation
-21,2
4,0
12,0
13,8
14,4
0,0
0,0
0,0
0,0
0,0
16. Exports of goods and services real growth
-4,8
8,7
5,9
9,8
11,3
17. Imports of goods and services real growth
-12,8
3,2
5,2
6,4
8,1
15. Change in inventories and net acquisition of valuables ( % of GDP)
Foreign trade nominal growth (in USD)
18. Exports of goods and services
-20,3
6,5
9,0
12,7
13,8
19. Imports of goods and services
-27,6
0,1
7,8
8,9
10,2
0,4
3,8
5,1
5,9
Contribution to GDP growth
20. Final domestic demand
-9,3
20.1. Investment
-4,7
0,7
2,2
2,8
3,1
20.2. Private consumption
-3,4
0,5
1,9
2,3
2,7
20.3. Government consumption
-1,2
-0,8
-0,2
0,1
0,0
21. Change in inventories and net acquisition of valuables
0,0
0,0
0,0
0,0
0,0
22. External balance of goods and services
6,3
1,2
-0,8
-0,1
-0,4
0,7
2,2
3,4
3,8
Growth of Gross Value Added
23. Agriculture
2,2
24. Industry (excluding construction)
-12,2
2,2
4,7
5,2
6,8
25. Construction
-17,1
-7,1
6,8
7,4
8,1
1,0
1,8
2,4
4,8
5,2
26. Services
Contribution to Gross Value Added growth
27. Gross Value Added growth
-2,2
1,5
2,9
4,8
5,4
28. Agriculture
0,3
0,1
0,3
0,4
0,4
29. Industry (excluding construction)
-2,5
0,4
0,8
1,0
1,2
30. Construction
-0,6
-0,2
0,2
0,2
0,2
31. Services
0,7
1,2
1,6
3,3
3,5
2009
2010
2011
2012
2013
7.321,0
7.291,0
7.262,0
7.233,0
7.204,0
Table 2: Labour market developments
Percentages unless otherwise indicated
1. Population (thousands)
2. Population (growth rate in %)
3. Working-age population (thousands)
4. Participation of working age population in total population
-0,4
-0,4
-0,4
-0,4
-0,4
4.732,0
4.717,0
4.706,0
4.702,0
4.697,0
64,6
64,7
64,8
65,0
65,2
5. Employment level (thousands)
1.889,0
1.831,0
1.840,0
1.861,0
1.891,0
6. Employment (growth rate in %)
-5,5
-3,1
0,5
1,1
1,6
7. Average real wage (growth rate in %)
0,2
1,1
1,4
2,4
3,1
2010
2011
2012
2013
Table 3: External sector developments
In mill EUR unless otherwise indicated
2009
1. Current account balance (% of GDP)
-7,4
-9,0
-9,2
-8,5
-8,0
2. Exports of goods
5.988,0
6.888,0
7.610,0
8.696,0
10.059,0
3. Imports of goods
11.090,0
11.575,0
12.562,0
13.705,0
15.239,0
4. Trade balance
-5.103,0
-4.687,0
-4.951,0
-5.009,0
-5.179,0
5. Exports of services
2.500,0
2.526,0
2.659,0
2.842,0
3.077,0
6. Imports of services
2.483,0
2.574,0
2.700,0
2.865,0
3.027,0
17,0
-48,0
-41,0
-23,0
50,0
7. Service balance
8. Exports of goods and services
8.488,0
9.414,0
10.269,0
11.538,0
13.136,0
9. Imports of goods and services
13.573,0
14.149,0
15.261,0
16.570,0
18.266,0
10. Exports of goods and services (% of GDP)
27,7
31,2
31,8
33,2
34,7
11. Imports of goods and services (% of GDP)
44,3
46,9
47,3
47,6
48,2
12. Net exports of goods and services (%of GDP)
-16,6
-15,7
-15,5
-14,5
-13,5
13. Net interest payments abroad
-640,0
-677,0
-712,0
-784,0
-859,0
14. Current transfers and other net factor income
3.459,0
2.703,0
2.746,0
2.852,0
2.975,0
15. Current account balance
-2.266,0
-2.708,0
-2.958,0
-2.964,0
-3.013,0
16. Foreign direct and portfolio investment
1.317,0
1.010,0
1.347,0
1.567,0
1.828,0
17. Foreign exchange reserves
12.070,0
11.227,0
11.511,0
11.876,0
12.317,0
18. Foreign debt
22.788,0
24.224,0
25.327,0
26.846,0
28.269,0
19. Оf which : public debt
5.663,0
6.394,0
7.242,0
7.855,0
8.496,0
20. Оf which : foreign currency denominated
22.788,0
24.224,0
25.327,0
26.846,0
28.269,0
21. Оf which : repayments due
2.541,0
3.258,0
2.606,0
3.016,0
3.672,0
22. Net foreign savings (%of GDP)
7,4
9,0
9,2
8,5
8,0
23. National savings (%of GDP)
9,3
8,1
9,1
11,1
13,4
24. Domestic savings (%of GDP)
0,1
1,4
2,8
5,2
7,8
25. Domestic private savings (%of GDP)
1,0
2,7
3,5
5,0
5,8
26. Domestic private investment (%of GDP)
13,4
13,5
14,9
16,0
17,6
27. Domestic public savings (%of GDP)
-0,9
-1,3
-0,7
0,2
2,0
28. Domestic public investment (%of GDP)
3,2
3,5
3,4
3,7
3,8
Table 4: General government budgetary developments
Percentages of GDP
2009
2010
2011
2012
2013
Net lending by sub-sectors
1. General government
-4,2
-4,8
-4,0
-3,5
-1,8
2. Central government
...
...
...
...
...
3. Local government
...
...
...
...
...
4. Social security funds
...
...
...
...
...
General government
5. Total receipts
39,8
38,9
38,3
37,7
37,5
6. Total expenditure
44,0
43,8
42,3
41,2
39,3
7. Budget balance
-4,2
-4,8
-4,0
-3,5
-1,8
0,8
1,2
1,4
1,5
1,2
-3,4
-3,6
-2,7
-2,0
-0,6
8. Interest
9. Primary balance
Components of revenues
10. Taxes
23,6
23,4
23,4
23,0
22,8
11. Contributions
11,1
10,6
10,5
10,5
10,7
5,1
4,9
4,4
4,2
4,0
39,8
38,9
38,3
37,7
37,5
12. Other
13. Total receipts
Components of expenditures
14. Collective consumption
18,5
18,1
17,4
16,8
16,1
15. Social transfers other than in kind
19,3
18,7
18,2
17,4
16,4
16. Interest
0,8
1,2
1,4
1,5
1,2
17. Subsidies
2,2
2,3
2,0
1,9
1,8
18. Gross fixed capital formation
3,2
3,5
3,4
3,7
3,8
44,0
43,8
42,3
41,2
39,3
19. Total expenditure
Table 5: General government debt developments
Percentages of GDP
2009
2010
2011
2012
2013
1. Gross debt level
33,7
38,1
39,8
39,8
39,4
2. Оf which : repayments due
5,9
8,3
8,5
9,0
9,2
3. Changes in gross debt
4,0
4,4
1,7
0,0
-0,4
3,6
2,7
2,0
0,6
Contributions to change in gross debt
4. Primary balance
3,4
5. Interest
0,8
1,2
1,4
1,5
1,2
6. Nominal GDP growth
-1,6
-2,1
-2,8
-3,4
-3,6
7. Other factors influencing the debt ration
1,5
1,7
0,4
0,0
1,4
8. Implicit interest rate on debt (%)
2,8
3,8
3,9
4,0
3,4
Appendix 2.
A SUMMARY OF REQUESTS BY BUDGET BENEFICIARIES AND IDENTIFIED LIMITS FOR 2011
- by purpose in RSD
Item
Code
1
1
Beneficiary
Functi
on
Purposes
2
3
20100 NATIONAL PARLIAMENT
4
5
110 Expenditures without differentiation by purposes
20101 NATIONAL PARLIAMENT - PROFESSIONAL
130 Expenditures without differentiation by purposes
DEPARTMENTS
1 Subtotal
2 10100 PRESIDENT OF THE REPUBLIC
2010 - budget
6
751.553.000
749.882.000
852.646.000
1.594.199.000
970.646.000
1.722.199.000
988.428.000
1.738.310.000
125.520.000
120.662.000
128.511.000
30.000.000
30.000.000
31.833.000
157.353.000
31.833.000
182.495.000
32.327.000
190.838.000
317.389.000
367.389.000
374.272.000
66.829.000
76.339.900
68.715.000
34.528.000
36.928.000
38.345.000
41.826.000
41.826.000
42.857.000
87.588.000
87.588.000
5.000.000
89.822.000
5.000.000
4.608.000
4.608.000
40.745.000
44.802.000
41.066.000
158.951.000
415.651.000
177.795.000
34.615.000
34.615.000
35.079.000
29.698.000
32.860.700
30.133.000
19.803.000
21.803.000
22.184.000
21.740.000
21.740.000
22.536.000
13.913.040
35.883.220
14.515.000
229.278.000
235.278.000
235.278.000
58.442.000
36.471.820
36.472.000
80.000.000
50.000.000
52.300.000
20.100.000
50.100.000
50.100.000
22.300.000
16.300.000
16.300.000
24.410.000
22.010.000
21.055.000
61.946.000
10.000.000
24.410.000
24.410.000
25.024.000
113.044.000
109.233.000
104.488.000
33.000.000
15.000.000
24.091.000
24.091.000
24.091.000
180.320.000
180.320.000
182.869.000
110 Expenditures without differentiation by purposes
10201 MEDIA COOPERATION OFFICE
110 Expenditures without differentiation by purposes
10204 OFFICE OF THE GOVERNMENT’S
110 Expenditures without differentiation by purposes
PRESIDENT
110 Expenditures without differentiation by purposes
PRESIDENT - for European Integrations
10206 HUMAN RESOURCE MANAGEMENT UNIT
110 Expenditures without differentiation by purposes
10208
Government officials development program
Staff records program - renewal of equipment and
system supplement
110 Expenditures without differentiation by purposes
OFFICE OF THE NATIONAL COUNCIL FOR
COOPERATION WITH THE INTERNATIONAL
TRIBUNAL FOR CRIMINAL PROSECUTION
OF PERSONS RESPONSIBLE FOR
SERIOUS VIOLATIONS OF INTERNATIONAL
HUMANITARIAN LAW COMMITTED ON THE
TERRITORY OF FORMER YUGOSLAVIA
FROM 1991
10215 OFFICE FOR SUSTAINABLE
DEVELOPMENT OF INSUFFICIENTLY
DEVELOPED REGIONS
10216 OFFICE OF THE FIRST DEPUTY PRIME
MINISTER
10217 OFFICE OF THE GOVERNMENT’S
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
PRESIDENT - for economic development
10218 OFFICE OF THE GOVERNMENT’S
PRESIDENT - for social policy and social
activities
10219 CENTRAL REGISTRY OF CONTRIBUTION
PAYERS FOR SOCIAL INSURANCE EMPLOYERS AND INSUREES
10220 SERBIA’S COORDINATION DEPARTMENT
FOR THE MUNICIPALITIES OF PRESEVO,
BUJANOVAC AND MEDVEDJA
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
The program for financing investment projects in
the municipalities of Presevo, Bujanovac and
Medvedja
The program for financing the translation and
printing of books in the Serbian and Albanian
language for the first year of university studies in
Presevo and Bujanovac
The program of scholarship for 300 high school
students, purchase of student bags and school kits
for students and provision of one-off cash benefits
for persons with special needs, single mothers,
children without parental care
10221 OFFICE OF THE NATIONAL COUNCIL FOR
The program for financing organizations that
undertake multiethnic, sports, cultural, religious
and other activities in order to improve the living
conditions of youth
The program of simultaneous interpreting
equipment purchase
110 Expenditures without differentiation by purposes
DECENTRALIZATION OF THE REPUBLIC OF
SERBIA
10222 OFFICE OF THE NATIONAL SECURITY
8
110 Expenditures without differentiation by purposes
GOVERNMENT
10205 OFFICE OF THE GOVERNMENT’S
2011 - LIMIT
741.553.000
Costs relating to preparation and granting of
awards
133 Expenditures without differentiation by purposes
2 Subtotal
3 10200 GENERAL SECRETARIAT OF THE
2011 Beneficiary’s
request (without
indexation)
7
Preparing the Strategy for Decentralization of the
Republic of Serbia
110 Expenditures without differentiation by purposes
COUNCIL
42200 EUROPEAN INTEGRATION OFFICE
110 Expenditures without differentiation by purposes
42400 ANTI-CORRUPTION COUNCIL
The services of translating acquis communautaire
into the Serbian language
360 Expenditures without differentiation by purposes
61029 GOVERNMENT’S AIR DEPARTMENT
450 Expenditures without differentiation by purposes
in RSD
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
2010 - budget
5
6
The lacking funds for the salaries of the Unit
Director and one co-pilot who start working in
2010
Airplane insurance
General revision of motor no. 1
Finishing the works on the hangar
Purchase of new airplane Falcon 900
3 Subtotal
4 30100 CONSTITUTIONAL COURT
4 Subtotal
5 30216 HIGH JUDICIAL COUNCIL
5 Subtotal
6 30215 STATE PROSECUTORS’ COUNCIL
6 Subtotal
7 30200 JUDICIAL BODIES
30203 GOVERNMENT’S PUBLIC PROSECUTOR’S
128.272.000
128.272.000
161.680.000
161.680.000
132.938.000
132.938.000
133.886.000
133.886.000
133.886.000
133.886.000
137.973.000
137.973.000
50.594.000
50.594.000
58.601.000
58.601.000
51.891.000
51.891.000
2.909.057.000
2.788.355.000
300.000.000
3.283.013.000
100.000.000
83.495.000
83.495.000
89.986.000
205.501.000
205.501.000
200.674.000
159.070.000
198.263.000
165.832.000
668.863.000
668.863.000
697.299.000
66.132.000
70.008.000
72.211.000
240.170.000
240.170.000
234.324.000
97.067.000
119.796.000
114.298.000
1.119.882.000
1.373.801.000
1.129.405.000
3.940.182.000
4.290.182.000
3.637.202.000
527.329.000
527.329.000
533.462.000
419.384.000
419.384.000
404.378.000
819.008.000
819.008.000
755.365.000
202.954.000
202.954.000
211.582.000
1.412.851.000
1.412.851.000
1.472.917.000
139.187.000
153.100.000
145.104.000
177.495.000
13.187.627.000
177.495.000
14.050.555.000
185.041.000
13.432.093.000
121.645.000
121.645.000
149.101.000
149.101.000
125.678.000
125.678.000
155.613.000
155.613.000
228.950.000
228.950.000
225.551.000
225.551.000
1.577.399.000
1.566.510.000
1.574.926.000
130.725.000
32.100.000
79.500.000
108.675.000
10.000.000
30.000.000
250.000.000
3.150.000
3.996.221.150
3.369.151.000
280.750.000
280.750.000
388.500.000
6.724.306.150
0
5.376.652.000
53.469.395.000
2.247.632.000
3.354.031.000
48.991.702.000
0
0
49.650.000
22.910.657.000
0
23.500.000.000
201.371.000
281.623.000
246.881.000
0
50.000.000
0
Introducing a modern information system
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
30211 COURTS OF APPEAL
330 Expenditures without differentiation by purposes
30214 WAR CRIMES PROSECUTOR’S OFFICE
330 Expenditures without differentiation by purposes
30221 SUPREME COURT OF CASSATION
330 Expenditures without differentiation by purposes
30222 COMPANY COURT OF APPEALS
330 Expenditures without differentiation by purposes
30225 HIGHER COURTS
330 Expenditures without differentiation by purposes
30226 COURTS OF GENERAL JURISDICTION
330 Expenditures without differentiation by purposes
30227 TRADE COURTS
330 Expenditures without differentiation by purposes
30228 HIGHER PUBLIC PROSECUTOR’S OFFICES
330 Expenditures without differentiation by purposes
30229 PUBLIC PROSECUTOR’S OFFICES OF
330 Expenditures without differentiation by purposes
GENERAL JURISDICTION
30232 HIGH MAGISTRATES COURT
330 Expenditures without differentiation by purposes
30233 MAGISTRATE COURTS
330 Expenditures without differentiation by purposes
30235 PROSECUTOR’S OFFICE FOR ORGANIZED
330 Expenditures without differentiation by purposes
CRIME
330 Expenditures without differentiation by purposes
APPEAL
9 Subtotal
10 61030 MINISTRY OF FOREIGN AFFAIRS
0
0
40.000.000
40.000.000
0
1.819.904.000
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
8 Subtotal
9 20102 STATE AUDIT INSTITUTION
1.644.020.040
11.700.000
6.800.000
40.000.000
40.000.000
2.035.000.000
4.203.693.640
330 Expenditures without differentiation by purposes
OFFICE
7 Subtotal
8 42700 OMBUDSMAN
133 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
Acquisition equipment for 53 DCO for biometric
passports
Purchase of administrative equipment
Necessary construction works
Software and equipment (protected computers)
for finances in MFA and DCO - integrated system
61031 DIPLOMATIC AND CONSULAR OFFICES
8
330 Expenditures without differentiation by purposes
30210 ADMINISTRATIVE COURT
30236 PUBLIC PROSECUTOR’S OFFICES OF
2011 - LIMIT
330 Expenditures without differentiation by purposes
OFFICE
30204 GOVERNMENT’S PUBLIC ATTORNEY’S
2011 Beneficiary’s
request (without
indexation)
7
113 Expenditures without differentiation by purposes
3.305.759.000
Health insurance of employees working abroad
Construction works on big buildings in Brussels,
Paris, Washington
10 Subtotal
11 61040 MINISTRY OF DEFENSE
4.883.158.000
210 Expenditures without differentiation by purposes
44.629.098.000
Professionalization of Serbian army
Purchase of equipment
Arranging the archives and transferring the SI
institute
Financing pensions of military insurees
250 Expenditures without differentiation by purposes
22.906.657.000
201.371.000
Participating in multinational operations
Long term residential loans for professional
military personnel of the Serbian Army
in RSD
Item
Code
1
Beneficiary
Functi
on
Purposes
2010 - budget
4
5
6
2
3
61041 DEFENSE INSPECTORATE
210 Expenditures without differentiation by purposes
61042 MILITARY SECURITY AGENCY
210 Expenditures without differentiation by purposes
61043 MILITARY INFORMATION AGENCY
210 Expenditures without differentiation by purposes
12 Subtotal
13 41300 SECURITY INFORMATION AGENCY
13 Subtotal
14 10500 MINISTRY OF FINANCE
2011 - LIMIT
8
17.873.000
15.784.000
15.790.000
100.000.000
108.290.000
100.016.000
145.000.000
156.000.000
145.611.000
67.999.999.000
1.500.000
82.845.933.000
0
73.000.000.000
42.461.053.000
42.461.053.000
45.830.260.000
45.830.260.000
44.475.294.000
44.475.294.000
3.508.217.000
3.508.217.000
3.573.386.000
3.573.386.000
3.588.817.000
3.588.817.000
210.201.000.000
210.201.000.000
219.100.000.000
3.593.044.000
3.593.044.000
2.605.900.000
73.473.000
100.000.000
22.048.700
100.000.000
23.063.000
2.481.536.302
2.481.536.302
4.909.061.000
25.701.000.000
48.998.685.000
27.689.743.000
3.087.312.000
205.500.000
3.285.474.000
531.000.000
356.100.000
3.008.961.000
155.500.000
0
0
0
661.000.000
0
204.400.000
0
Infrastructural works on the facilities of the
Military and Information Agency
11 Subtotal
12 10600 MINISTRY OF INTERNAL AFFAIRS
2011 Beneficiary’s
request (without
indexation)
7
310 Expenditures without differentiation by purposes
360 Expenditures without differentiation by purposes
90 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
IPA -2008 Decentralized Implementation System of
the EU funds
IPA - second component
160 Expenditures without differentiation by purposes
180 Expenditures without differentiation by purposes
10502 CUSTOMS ADMINISTRATION
110 Expenditures without differentiation by purposes
Construction of border crossings
Construction of border crossings
Construction of border crossings
Construction of border crossings
Construction of customs houses and customs
facilities
Construction of customs houses and customs
facilities
Construction of customs houses and customs
facilities
Providing for normal functioning and continuous
technical and technological modernization of CSIS
0
704.482.488
35.400.000
0
0
55.100.000
212.000.000
212.460.000
33.835.000
35.022.000
33.561.000
29.114.000
24.984.000
27.477.000
80.000
80.000
730.000
730.000
250.000
250.000
600.000
600.000
250.000
943.000
250.000
943.000
270.000
1.000
270.000
0
200.000
200.000
0
0
53.452.000
87.452.000
3.500.000
54.303.000
3.500.000
109.039.000
105.139.000
99.857.000
10.111.000
18.600.000
11.427.000
24.788.000
24.788.000
25.746.000
34.900.000.000
34.900.000.000
41.000.000.000
5.969.351.000
46.610.000
286.574.265.302
5.969.351.000
46.610.000
312.605.140.490
6.121.662.000
46.610.000
305.231.954.000
CSIS overall protection
Financial support from the EU within the
Instrument for Pre-Accession Assistance (IPA) European funds and national co-financing
10504 GAMES OF CHANCE ADMINISTRATION
110 Expenditures without differentiation by purposes
10507 TOBACCO ADMINISTRATION
420 Expenditures without differentiation by purposes
Purchase of equipment for public security for new
business premises
Electricity use services for the existing and new
business premises
Purchase of a photocopying maching for the new
business premises
Capital maintenance of buildings and facilities and
project planning, capital mainenance of
communication and electricity lines
10508 ANTI-LAUNDERING ADMINISTRATION
Purchase of 10 thermal-accumulation stoves for
the new business premises
Purchase of computer equipment
Purchase of necessary office furniture for complete
furnishing of the assistant director office in the
new business premises
Mandatory fee cost
Current maintenance of the two new photocopying
machines (mandatory regular service within the
guarantee time, after a certain number of copies
and further on)
Office materials
133 Expenditures without differentiation by purposes
10509 FOREIGN CURRENCY INSPECTORATE
IPA - 2010
133 Expenditures without differentiation by purposes
10510 FREE TRADE ZONES ADMINISTRATION
410 Expenditures without differentiation by purposes
10511 PUBLIC DEBT ADMINISTRATION
110 Expenditures without differentiation by purposes
170 Expenditures without differentiation by purposes
40200 TAX ADMINISTRATION
110 Expenditures without differentiation by purposes
Software
14 Subtotal
in RSD
Item
1
15
Code
Beneficiary
2
3
10300 MINISTRY OF JUSTICE
10301 CRIMINAL SANCTIONS ENFORCEMENT
AGENCY
10302 DIRECTORATE FOR MANAGING SEIZED
Functi
on
Purposes
2010 - budget
4
5
6
15 Subtotal
16 10700 MINISTRY OF AGRICULTURE, FORESTRY
340 Organizing, enforcing and supervising execution of
criminal penalties
Significant increase in the scope of activities increasing the number of arrested persons by 2013
8
386.165.000
395.065.000
388.358.000
5.555.892.000
5.555.892.000
5.715.833.000
442.000.000
143.524.000
55.867.000
58.162.000
57.194.000
31.650.000
6.029.574.000
79.331.100
6.530.450.100
33.438.000
6.338.347.000
2.370.061.000
2.622.558.000
2.372.893.000
2.769.000
12.629.000
7.269.000
100.000.000
100.000.000
100.000.000
83.431.000
73.571.000
73.571.000
50.000.000
50.000.000
50.000.000
36.700.000
151.810.000
36.705.000
82.693.000
91.100.000
82.716.000
31.240.000
37.000.000
31.240.000
15.477.700.000
16.985.297.000
15.477.723.000
157.151.000
171.050.000
157.152.000
1.479.901.000
1.613.925.000
1.479.990.000
36.299.000
19.907.945.000
36.850.000
10.000.000
3.000.000
500.000
21.959.290.000
36.313.000
10.000.000
2.000.000
0
19.917.572.000
987.407.267
1.023.780.000
983.245.000
2.909.125.000
25.400.000.000
9.534.125.000
3.500.000.000
3.500.000.000
3.500.000.000
10.285.000.000
6.070.000.000
6.070.000.000
1.000.000.000
1.000.000.000
1.000.000.000
2.600.000.000
1.000.000.000
1.000.000.000
1.400.000.000
1.400.000.000
1.400.000.000
360 Expenditures without differentiation by purposes
360 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
AND WATER MANAGEMENT
10701 GOVERNMENT DIRECTORATE OF WATERS
2011 - LIMIT
360 Expenditures without differentiation by purposes
PROPERTY
10303 JUDICIAL ACADEMY
2011 Beneficiary’s
request (without
indexation)
7
630 Expenditures without differentiation by purposes
Dams and accumulations, Program for
construction, reconstruction and improvement of
water management facilities
Water protection, Program for construction,
reconstruction and improvement of water
management facilities
International cooperation, Program for
construction, reconstruction and improvement of
water management facilities
10702 AGRICULTURAL LAND ADMINISTRATION
420 Expenditures without differentiation by purposes
10703 GENERAL INSPECTORATE OF
420 Expenditures without differentiation by purposes
AGRICULTURE, FORESTRY AND WATER
MANAGEMENT
10704 DIRECTORATE OF REFERENCE NATIONAL
420 Expenditures without differentiation by purposes
LABORATORIES
10705 AGRARIAN PAYMENTS ADMINISTRATION
420 Expenditures without differentiation by purposes
12001 FOREST ADMINISTRATION
420 Expenditures without differentiation by purposes
41900 VETERINARY ADMINISTRATION
760 Expenditures without differentiation by purposes
42000 PLANT PROTECTION ADMINISTRATION
420 Expenditures without differentiation by purposes
IPA Project
Analysis of breeds in laboratories
Workshops, printing services, informing
16 Subtotal
17 13000 MINISTRY OF ECONOMY AND REGIONAL
410 Expenditures without differentiation by purposes
DEVELOPMENT
FIAT - founding stake and special importance
investments
Program for distributing and using the funds of
credit support to companies via the Development
Fund
The program of measures for alleviating the
negative effects of global economic crisis in the
Republic of Serbia
Start-up loans for beginners via the Development
Fund
Earmarked loans for stimulating production and
exports
Program for stimulating new direct investments
and opening of new jobs - greenfield
Export-promotion program by means of loans and
export insurance, increase in capital of AOFI
800.000.000
0
412 Expenditures without differentiation by purposes
59.556.085
70.249.000
58.009.000
600.000.000
834.000.000
700.000.000
3.655.000.000
5.350.000.000
3.655.000.000
6.036.106.000
6.000.000.000
6.276.000.000
250.000.000
265.000.000
250.000.000
45.000.000
97.500.000
65.000.000
Reimbursement of salaries and improvement of
work conditions for the disabled persons
NES transfer for active employment measures
Resolving the work status of redundant employees
(cash compensation, special cash compensation
and severance pays)
Payment of late salaries to the Zastava Group
Project “Support to the national efforts for
promoting employment of youth and managing
migrations - financing the programs for the Youth
Employment Fund”.
Cofinancing the Operative program - 4. IPA
component - Human Resource Development
473 Expenditures without differentiation by purposes
Construction of accommodation capacities in the
location of Jabucko ravniste
0
221.140.000
221.140.000
213.759.000
530.000.000
4.000.000.000
1.430.000.000
in RSD
Item
Code
Beneficiary
Functi
on
Purposes
1
2
3
4
5
PE Skijalista Srbije
PE Stara planina
Tourist Organization of Serbia
Loans for stimulating the quality of hospitality
supply
Tourism development projects
National tourism development corporation
Park Palic d.o.o.
474 Expenditures without differentiation by purposes
2010 - budget
6
2011 Beneficiary’s
request (without
indexation)
7
2011 - LIMIT
8
871.800.000
988.200.000
220.000.000
3.792.033.000
100.000.000
250.000.000
871.800.000
100.000.000
220.000.000
400.000.000
550.000.000
10.000.000
40.000.000
400.000.000
1.080.000.000
56.050.000
40.000.000
400.000.000
550.000.000
10.000.000
40.000.000
386.785.205
687.807.000
376.420.000
1.700.000.000
28.000.000
1.900.000.000
120.000.000
1.700.000.000
28.000.000
25.000.000
60.000.000
25.000.000
17.000.000
20.000.000
17.000.000
80.000.000
0
100.000.000
0
40.000.000
0
50.000.000
0
Program for stimulating balanced regional
development - crediting undeveloped
municipalities via the Development Fund (for
devastated areas, processing industry and for
stimulating entrepreneurship; loans for investment
purposes - building facilities, extending the existing
facilities, purchase of equipment)
Cluster development program
Program for stimulating companies to invest into
innovation
Program of support for the new initiatives for
stimulating entrepreneurship
Municipality assistance program through
cofinancing the mandatory part of participation for
priority projects financed from grants
Competition development support program: fast
growing SME support project, business services
development support project
Program for co-financing local initiatives for SME
development (including business incubators)
SME support program for introducing e-business
Entrepreneurship development support program
for particularly sensitive target groups
0
Program of support for SME’s facing serious
financial problems that can jeopardize their
survival (second chance)
Program for support to SME’s for implementing
international QMS standard and product
certification
EQUITY & VENTURE CAPITAL FUND development
support program
Program for the support to old art crafts and hand
made manufacturing
IPA - 2010 South and South-West Serbia support
program
490 Expenditures without differentiation by purposes
13001 DIRECTORATE OF MEASURES AND
Accommodation costs for economic advisors from
DCO
130 Expenditures without differentiation by purposes
PRECIOUS METALS
13002 STANDARDIZATION INSTITUTE
17 Subtotal
18 10900 MINISTRY OF MINING AND ENERGY
10.000.000
10.000.000
52.000.000
0
0
0
50.000.000
52.300.000
523.250.408
420.868.000
371.543.000
90.000.000
108.000.000
112.968.000
136.521.000
129.175.000
143.254.000
80.734.000
40.945.624.965
111.300.000
65.888.902.000
82.771.000
41.246.194.000
471.048.000
236.533.000
238.841.000
24.000.000
24.000.000
27.000.000
27.000.000
200.000.000
0
0
21.000.000
21.000.000
1.920.000
1.920.000
15.000.000
15.000.000
500.000
500.000
15.000.000
0
5.000.000
5.000.000
130 Expenditures without differentiation by purposes
430 Expenditures without differentiation by purposes
Preparation of new Energy Development Strategy
until 2025
City construction land fee for the business
premises of the Ministry
Energy Development Strategy until 2025
implementation program
Subsidies to RS heat plants (KfW) phase 4.
Preparing analyses and bases for the six by-laws
and upgrade of the information system
Monitoring and enforcing the energy and climate
package of the EU and energy efficiency within the
RS Action Plan
Preparing the Program of Urgent Measures for
reducing the impact of high oil and gas prices
Law confirming the Statute of the International
Renewable Energy Agency (IRENA) for RS
membership in the Agency
Program for stimulating thermal energy generation
from renewable sources
Forming the certification system for bio-fuel
manufacturers
Forming new institutions from the area of energy:
Institution for strategic planning in energy sector,
Energy efficiency fund, and Mandatory oil reserves
institution
0
in RSD
Item
Code
Beneficiary
1
2
3
Functi
on
Purposes
2010 - budget
4
5
6
2011 Beneficiary’s
request (without
indexation)
7
2011 - LIMIT
8
440 Expenditures without differentiation by purposes
2.157.651.000
3.298.151.000
2.127.321.000
15.000.000
15.000.000
2.628.699.000
20.000.000
3.879.104.000
20.000.000
2.495.582.000
20.245.147.000
20.245.147.000
29.065.398.300
29.065.398.300
20.239.677.000
20.239.677.000
212.156.000
260.700.000
193.918.000
40.000.000
40.000.000
40.000.000
157.378.000
100.000.000
1.140.000.000
100.000.000
1.140.000.000
RS share in the Government of Japan’s grant in the
Mining Waste Management Project - flotation
tailings pond in the Bor region, grant
Mining development support and removing
detrimental consequences created by mineral ore
exploitation program
18 Subtotal
19 13100 MINISTRY OF INFRASTRUCTURE
19 Subtotal
20 13200 MINISTRY OF TELECOMMUNICATIONS AND
450 Expenditures without differentiation by purposes
460 Expenditures without differentiation by purposes
INFORMATION SOCIETY
SEELight Project together with the Corridor X
project is a part of the HIPERB Program (Hellenic
Plan for the Economic Reconstruction of the
Balkans)
Academic scientific research and education
network of Serbia
Digitalization
IPA - 2010 Support to transferring to digital
broadcasting in RS
IPA - 2010 Government Administration Reform
20 Subtotal
21 13400 MINISTRY OF LABOR AND SOCIAL POLICY
162.500.000
409.534.000
1.540.700.000
125.000.000
1.761.418.000
1.000
13.286.900.000
15.236.600.000
0
13.898.097.000
38.944.000
43.424.310
38.944.000
31.800.000
30.300.000
30.300.000
25.900.000
34.159.774
80.000.000
25.900.000
0
70.000.000
25.000.000
20.000.000
0
0
0
10 Expenditures without differentiation by purposes
Veteran and Disability Protection Rights
Delivery services from Agreement with Postanska
stedionica for paying the Veteran and Disability
Protection Rights
Celebrating important dates from the Serbian
history - festivals
Reconstruction and improvement of monuments in
the country and abroad
Monument and cript at Zebrnjak
Monument to the Unknown hero on the Avala
Monument of gratitude to France
Monumental complex Sremski front
Serbian military graveyard in Thessaloniki - Zejtilnik
0
Maintenance of monuments in the country and
abroad
Services from the software maintenance contract
in the area of veteran and disability protection and
payment of doctor commissions
Financing program and project activities of veteran
and disability associations
Improving the position of the veteran population continuation of PTSP projects and forming Veteran
Centers
Forced collection
40 Budget compensations for maternity leave
Budget compensations for children and families child allowance
Budget compensations for children and families parent allowance
Budget compensations for families and children Mothers refugees, Children in pre-school
institutions with mental problems and children
without parental care, and one-off assistance
Fixed costs - commission of PS for child allowance
payments
Contracted services - printing forms for child and
parent allowance, printing Demographic Survey
and work of the ombudsman and maintenance of
application software
Grants from the budget to non-governmental
organizations
70 Expenditures without differentiation by purposes
6.564.000
6.564.000
6.564.000
4.248.000
5.748.000
4.248.000
49.211.000
49.211.000
49.211.000
100.000.000
18.653.602.000
10.000.000
100.000.000
20.620.000.000
0
100.000.000
20.620.000.000
9.006.000.000
10.200.000.000
10.200.000.000
4.700.030.000
5.170.000.000
5.170.000.000
12.700.000
12.700.000
12.700.000
64.400.000
71.400.000
71.400.000
19.500.000
19.500.000
19.500.000
5.000.000
5.000.000
5.000.000
8.001.000
Wages of employees in social protection
institutions
Rights of natural entities in the area of social
protection
Investments into social protection institutions
Transfers by Social protection improvement
program passed by the minister
Monitoring the level of rights to the material
assistance and development of social protection
services locally
0
3.786.063.000
3.849.338.000
3.954.136.000
16.075.641.000
17.123.888.000
17.505.298.000
65.000.000
65.000.000
65.000.000
10.700.000
10.700.000
11.192.000
3.466.000.000
0
in RSD
Item
Code
Beneficiary
Functi
on
Purposes
2010 - budget
1
2
3
4
5
6
Forming regional centers for family
accommodation and employing new workers in
social work centers
Founding Social Protection Chamber
90 Expenditures without differentiation by purposes
2011 Beneficiary’s
request (without
indexation)
7
2011 - LIMIT
8
300.000.000
59.000.000
0
0
113.258.000
116.622.000
111.369.000
24.899.000.000
29.768.500.000
27.510.000.000
18.100.000
1.900.000
250.000.000
1.900.000
18.933.000
2.110.000
636.965.000
368.600.000
636.965.000
518.600.000
642.818.000
518.600.000
22.200.000
22.200.000
22.200.000
4.750.000
5.500.000
4.750.000
13.359.000
13.359.000
13.359.000
1.000.000
0
7.157.000
7.157.000
4.674.000
3.000.000
30.365.000
92.065.859.000
30.365.000
108.060.375.084
30.365.000
100.672.151.000
8.945.016.000
10.207.980.000
8.954.047.000
834.687.000
0
482.043.000
0
376.596.000
0
8.945.016.000
1.993.509.000
13.894.815.000
0
8.954.047.000
522.838.000
522.838.000
533.847.000
317.000.000
311.837.000
153.000.000
267.000.000
311.837.000
153.000.000
267.000.000
266.137.000
143.000.000
25.000.000
65.000.000
142.000.000
4.660.000
40.000.000
66.500.000
142.000.000
4.660.000
25.000.000
40.000.000
138.000.000
4.874.000
20.000.000
10.000.000
20.000.000
10.000.000
1.500.000
1.000.000
20.000.000
10.000.000
1.500.000
0
80.000.000
50.000.000
2.085.258.000
85.793.775
78.832.000
169.950.000
180.000.000
180.000.000
178.000.000
350.000.000
422.000.000
527.000.000
178.000.000
350.000.000
50.000.000
160.000.000
100.000.000
80.000.000
0
250.000.000
0
25.000.000
15.000.000
85.000.000
0
Transfer of funds to the RF PIO from RS budget
Reimbursement of the paid VAT on import of
motor vehicles for the disabled persons, war
veterans with disabilities and the civilians disabled
during the war
Age pension for Jovanka Broz
410 Expenditures without differentiation by purposes
Financing the work of the Solidarity Fund
Financing the work of the Social Economic Council
13401 SECURITY AND SAFETY AT WORK
IPA - 2008 Support to Serbia’s participation in the
Community programs
410 Expenditures without differentiation by purposes
ADMINISTRATION
Implementing the activities contained in the Action
Plan for implementing the Strategy of Security and
Safety at Work in RS for a period 2009-2012.
13402 GENDER EQUALITY ADMINISTRATION
410 Expenditures without differentiation by purposes
7.157.000
Activities regarding implementation of the Action
Plan for conducting the national strategy for
improving the position of women
50010 LABOR INSPECTORATE
21 Subtotal
22 13500 MINISTRY OF SCIENCE AND
410 Expenditures without differentiation by purposes
140 Expenditures without differentiation by purposes
TECHNOLOGICAL DEVELOPMENT
The program of cofinancing integral and
interdisciplinary researches
Establishing a national importance institute in
accordance with the Strategy and the Law
Doctoral and academic studies project cofinancing
program
Program for founding the centers of excellence
22 Subtotal
23 14000 MINISTRY OF ENVIRONMENT AND SPATIAL
560 Expenditures without differentiation by purposes
PLANNING
Projects from the area of geological research
Projects from the area of environment
Financing the Nature Protection Institute
Financing the Ionizing Rays Protection Agency
Financing the Chemicals Agency
Cofinancing protected natural goods
Contributions to international organizations
Projects from the area of environment - HBO
Indemnization for protected natural species
JDS project 3 - Third joint Danube research
Strategy implementation monitoring plan
National Environmental protection program
implementation
620 Expenditures without differentiation by purposes
Financing the activities of the Spatial Planning
Agency
Financing the reconstruction of the Kolubara
region hit by earthquake
Preparation of spatial and urban plans
The “Clean Serbia” project - building local
infrastructure, removing unauthorized waste
depots and other pollutants in order to protect the
environment
Financing urgent interventions and assisting people
in case of the elements
Financing the building of the Drina bridge on the
location Bacevci-Fakovici with access roads and
new border crossing
Project “Border Crossing Kotroman
Reconstruction”, which is in the protected natural
good Mokra Gora
Financing the building of a residential building for
the returnees to Kosovo and Metohija in Kosovska
Mitrovica and Zubin Potok, and building the church
facilities in the Zica Monastery
in RSD
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
2010 - budget
5
6
Financing the building of database and information
system for licenses, investment projects, urban and
spatial planning
Financing the founding and work of the Social
Counselling Agency
Subsidizing interest on loans for construction of
5,000 residential units
Financing implementation of the Law on Social
Living
Conducting a Program of Training for Managers of
residential buildings and conducting a pilot project
for about 50 residential buildings in around 20
towns in Serbia
14001 ENVIRONMENTAL PROTECTION AGENCY
Construction of 500 publicly owned residential
units
IPA - 2010 South and South-West Serbia support
program
560 Expenditures without differentiation by purposes
50026 ENVIRONMENTAL PROTECTION FUND
560 Expenditures without differentiation by purposes
23 Subtotal
24 13800 MINISTRY OF YOUTH AND SPORTS
13801 SERBIAN ANTI-DOPING AGENCY
810 Functioning of the Ministry
Conducting programs and projects in the area of
youth policy
Conducting programs and projects in the area of
sports
Conducting programs and projects in the area of
investments
810 Functioning of the Serbian Antidoping Agency
13802 PHYSICAL EDUCATION INSTITUTES
13803 YOUNG TALENTS FUND
50025 SPORTS FINANCING BUDGET FUND
24 Subtotal
25 11800 MINISTRY OF CULTURE
810 Construction of sports capacities for the disabled
persons
Reconstruction of sports capacities to adjust them
for use of the disabled persons
2011 - LIMIT
8
4.000.000
4.000.000
20.000.000
20.000.000
2.000.000.000
0
1.000.000.000
1.000.000.000
50.000.000
10.000.000
0
25.000.000
26.150.000
43.676.000
95.774.768
44.676.000
23.562.000
4.471.781.000
112.150.000
23.562.000
6.653.465.543
124.853.000
24.544.000
3.530.560.000
113.556.000
187.980.000
198.800.000
199.812.000
1.894.212.000
2.054.473.200
1.931.109.000
451.830.000
486.000.000
450.000.000
14.398.000
14.398.000
14.582.000
16.000.000
16.000.000
650.000
650.000
1.020.000
1.020.000
1.200.000
0
1.000.000
82.841.000
34.416.000
12.000.000
0
85.020.000
17.000.000
0
565.944.000
20.783.000
5.740.000
2.048.000
650.000.000
14.000.000
0
0
589.295.000
95.000.000
95.000.000
99.370.000
7.300.000
7.300.000
20.250.000
3.424.605.000
14.570.000
3.823.092.200
14.570.000
3.553.284.000
96.418.000
100.002.000
100.193.000
54.347.000
527.000
60.000.000
2.000.000
54.347.000
527.000
130.000.000
180.000.000
130.000.000
242.800.000
250.000.000
242.800.000
73.000.000
95.000.000
73.000.000
29.765.000
30.000.000
29.765.000
166.950.000
190.000.000
166.950.000
37.000.000
40.000.000
40.000.000
131.200.000
180.000.000
138.522.000
55.591.000
80.000.000
55.591.000
Introducing regular doping controls in national
competitions
The project of labeling pharmaceutical products
based on the Law on Sports (doping)
Implementation of the Adams base and athlete
training
Cooperation with the Ministry of Internal Affairs
and Customs Administration for preventing crimes
and offences, under the Law on Doping Prevention
in Sports
Project for support to prevention and education in
rehabilitation
810 Functioning of the NSO
Maintenance of the Sports Hall
Improvement of the trim track
Revitalization of the center for motor and medical
researches
Material expenses
Tests in camps
980 Student scholarships
European integration scholarships - IPA project
2011 Beneficiary’s
request (without
indexation)
7
82.841.000
820 Expenditures without differentiation by purposes
Regular activities of the governmental bodies
Intengible assets
Protection, Program of distributing and using the
funds adopted by the Serbian Government
Cinematography, Program of distributing and using
the funds adopted by the Serbian Government
Scene and music art, Program of distributing and
using the funds adopted by the Serbian
Government
Visual art, Program of distributing and using the
funds adopted by the Serbian Government
Literature, Program of distributing and using the
funds adopted by the Serbian Government
Programs in Kosovo and Metohija, people’s,
amature and national minorities’ creations
International cultural cooperation, Program of
distributing and using the funds adopted by the
Serbian Government
Supreme artistic achievements, Program of
distributing and using the funds adopted by the
Serbian Government
in RSD
Item
Code
Beneficiary
Functi
on
Purposes
2010 - budget
1
2
3
4
5
6
11801 CULTURE INSTITUTIONS
Media competitions, Program of distributing and
using the funds adopted by the Serbian
Government
Subsidies to PE’s for informing
National awards
Transfers to the second level of power for
protection of monuments
Restoration of the Chilandar
Grants to cultural associations
820 Expenditures without differentiation by purposes
2011 Beneficiary’s
request (without
indexation)
7
2011 - LIMIT
8
108.500.000
385.802.000
252.000.000
110.000.000
420.000.000
260.000.000
108.500.000
385.802.000
263.592.000
213.764.000
50.000.000
100.000.000
385.000.000
150.000.000
149.998.000
223.597.000
150.000.000
149.998.000
2.782.192.000
1.967.192.000
1.937.192.000
762.040.000
1.198.941.000
762.040.000
147.000.000
41.901.000
5.860.797.000
520.000.000
47.000.000
6.415.133.000
147.000.000
41.901.000
5.201.317.000
115.768.000
85.568.000
86.265.000
100.000.000
120.000.000
120.000.000
3.500.000
3.500.000
17.000.000
17.000.000
700.000
700.000
215.768.000
9.000.000
235.768.000
9.000.000
236.465.000
339.901.000
439.401.000
334.992.000
2.898.000.000
35.719.000
88.055.000
244.863.000
2.898.000.000
35.719.000
88.055.000
347.350.000
2.940.264.000
37.362.000
92.106.000
270.000.000
40.000.000
40.000.000
41.840.000
63.000.000
63.000.000
65.898.000
25.000.000
25.000.000
26.150.000
5.000.000
5.000.000
5.230.000
39.000.000
39.000.000
40.794.000
100.567.000
208.131.000
500.000
157.493.000
500.000
100.000.000
0
100.000.000
0
100.000.000
0
147.867.000
0
28.500.000
0
42.700.000
0
7.000.000
0
3.879.105.000
156.000.000
4.871.223.000
156.000.000
4.168.629.000
138.224.000
130.816.000
130.216.000
237.000.000
384.400.000
284.400.000
Programs of culture institutions in accordance with
the Culture Law - regular financing
Investments into the preparation of projects for
reconstruction of institutions, renovation of
installed equipment and purchase of new,
purchase of art works, museum archives, etc.
Matica srpska, court penalties
25 Subtotal
26 12300 MINISTRY OF THE DIASPORA
410 Expenditures without differentiation by purposes
Lease of satellite services for broadcasting the
program of Public Service RTS for Europe, North
America and Australia for a period of 2011 to 2013
Improving the position and protection of rights and
interests of the Diaspora members and Serbs in the
region
Improving cooperation/work of organizations and
associations in the Diaspora and organizations and
associations of organizations of Serbs in the region
Changed and supplemented release of a DVD
“Investment opportunities in the municipalities
and cities of Serbia” and supplemented issue of the
brochure “Why invest into Serbia”
Preserving, using and cherishing the Serbian
language and the Cyrillic script
26 Subtotal
27 13900 MINISTRY FOR KOSOVO AND METOHIJA
110 Expenditures without differentiation by purposes
Salaries to local governments in Kosovo and
Metohija
Harvest in Kosovo and Metohija
Firewood in Kosovo and Metohija
Investment building for IRL
Equipping houses of the returnees in Kosovo and
Metohija
Material costs for schools in Kosovo and Metohija
Reconstruction of schools in Kosovo and Metohija
Improving health care in Kosovo and Metohija
Reconstruction of cultural goods in Kosovo and
Metohija
Funds for the returnees in Kosovo and Metohija
Participation for the IPA program
Restructuring and ownership transformation of
legal entities from the Serbian regions in Kosovo
and Metohija
Agriculture development in the Serbian regions in
Kosovo and Metohija
Overcoming the problems of electricity supply for
the Serbian regions in Kosovo and Metohija
Reconstruction of the Serbian monasteries in
Kosovo and Metohija
Improving the education system in the Serbian
regions in Kosovo and Metohija
Preservation of the Serbian cultural heritage in
Kosovo and Metohija
Construction of the nursery school Djurdjevak in
Brnjica in Kosovo and Metohija
Public company for development and
improvement of information by means of
electronic media in the Serbian language in AP
Kosovo and Metohija
27 Subtotal
28 14200 MINISTRY OF HUMAN AND MINORITY
110 Expenditures without differentiation by purposes
RIGHTS
160 Expenditures without differentiation by purposes
in RSD
Item
1
Code
Beneficiary
2
3
50029 NATIONAL MINORITIES BUDGET FUND
28 Subtotal
29 14100 MINISTRY FOR THE NATIONAL
Functi
on
Purposes
2010 - budget
4
5
6
10.000.000
525.216.000
2.000.000
416.616.000
8.671.225.000
144.225.000
10.000.000.000
15.000.000.000
1.109.225.000
0
0
25.000.000.000
3.064.000.000
1.300.000.000
0
1.500.000.000
1.500.000.000
2.000.000.000
1.500.000.000
2.000.000.000
500.000.000
8.671.225.000
2.500.000.000
58.944.225.000
500.000.000
8.673.225.000
77.541.000
77.541.000
77.541.000
77.541.000
80.542.000
80.542.000
42.275.000
43.425.000
5.000.000
43.874.000
0
9.000.000
0
42.275.000
2.000.000
59.425.000
0
43.874.000
568.911.000
580.035.680
610.946.000
568.911.000
2.339.479.230
1.260.937.358
60.000.000
4.240.452.268
2.339.479.000
1.260.937.000
60.000.000
4.271.362.000
1.130.611.000
1.194.555.000
1.160.407.000
9.185.000
1.139.796.000
33.614.000
1.228.169.000
35.160.000
1.195.567.000
1.423.197.000
1.444.056.000
1.327.315.000
1.423.197.000
610.000.000
2.054.056.000
0
1.327.315.000
25.313.000
25.784.000
25.857.000
25.313.000
600.000
26.384.000
600.000
26.457.000
110.778.000
38.750.000
110.778.000
38.750.000
114.483.000
38.750.000
6.800.000
7.300.000
7.300.000
41.692.000
23.628.000
21.700.000
410 Expenditures without differentiation by purposes
Support to infrastructural development in the most
underdeveloped municipalities
Infrastructure development in big cities - the
Zemun-Borca bridge
Development of economic infrastructure
Development of infrastructure for improving the
standard of people (education, health, culture)
110 Expenditures without differentiation by purposes
140 Expenditures without differentiation by purposes
National Development Plan
Development of a macroeconomic model of
economic growth
Forming the research and development
observatory for SME’s.
31 Subtotal
32 40400 STATE STATISTICS AGENCY
130 Expenditures without differentiation by purposes
Population, household and apartments census,
2011
Agriculture census 2011
Debt for construction land fee
32 Subtotal
33 40500 STATE ADMINISTRATION FOR
410 Expenditures without differentiation by purposes
HYDROMETEOROLOGY
Contributions - membership fees to international
organizations
33 Subtotal
34 40600 STATE ADMINISTRATION OF GEODESY
410 Expenditures without differentiation by purposes
Preparing the national base of geospatial data of
RS
34 Subtotal
35 40800 STATE ADMINISTRATION OF SEISMOLOGY
8
2.000.000
377.224.000
Corridor 10
Belgrade-Southern Adriatic
Construction of modern Serbian roads to major
cities
Improvement of local communal infrastructure
30 Subtotal
31 40300 STATE DEVELOPMENT AGENCY
2011 - LIMIT
160 Expenditures without differentiation by purposes
INVESTMENT PLAN
29 Subtotal
30 40100 STATE LEGISLATION SECRETARIAT
2011 Beneficiary’s
request (without
indexation)
7
410 Expenditures without differentiation by purposes
Seismology station network maintenance program
35 Subtotal
36 40700 DIRECTORATE OF STATE PROPERTY
130 Expenditures without differentiation by purposes
BC Horgos
Managing immovable property owned by the state
(business premises, apartments, garages) until
their distribution
Disposing of immovables owned by the state
(acquisition, alienation, exchange, lease, use, etc.)
Managing and disposing of state-owned equipment
3.200.000
Information system implementation and
development
Health care and insurance of employees
Master plan for disposing of the immovables of RS
Army
Sales and Purchase of apartments according to the
Regulation
Reconstruction of the building in Belgrade - 15
Uzicka St.
Reconstruction of the building in Belgrade - 28
Uzicka St.
36 Subtotal
37 11601 STATE ADMINISTRATION OF INFORMATICS
5.000.000
1.300.000
2.500.000
1.300.000
2.500.000
1.300.000
300.000
780.000
300.000
5.450.000
0
300.000.000
100.000.000
207.820.000
270.000.000
760.486.000
0
286.333.000
26.982.000
22.582.000
21.251.000
5.000.000
5.000.000
2.000.000
29.582.000
2.000.000
28.251.000
140 Expenditures without differentiation by purposes
AND INTERNET
Development of e-government in RS for a period
2011-2013
Replacement and upgrading of existing equipment
37 Subtotal
38 11301 SERBIA INVESTMENT AND EXPORT
100.000
27.082.000
410 Expenditures without differentiation by purposes
PROMOTION AGENCY
38 Subtotal
39 10202 DEMINING CENTER
0
27.441.595
27.441.595
0
0
250 Expenditures without differentiation by purposes
12.175.000
11.872.000
12.310.000
in RSD
Item
Code
Beneficiary
Functi
on
Purposes
1
2
3
4
5
39 Subtotal
40 64040 INTELECTUAL PROPERTY
Purchase of equipment for marking the navigable
route
Purchase of equipment for marking the navigable
route
Implementation of RIS on the Danube
Equipment insurance
Health care of employees
42 Subtotal
43 50011
SOCIAL INSURANCE ADMINISTRATION
11.872.000
12.310.000
106.865.000
106.865.000
105.303.000
105.303.000
105.443.000
105.443.000
165.984.000
165.984.000
171.078.000
3.031.000
3.031.000
3.031.000
13.176.000
172.815.000
3.800.000
1.000.000
186.991.000
0
0
3.800.000
0
177.909.000
68.370.000
68.370.000
60.842.000
60.842.000
64.914.000
64.914.000
21.381.000
21.381.000
22.091.000
21.381.000
900.000
22.281.000
900.000
22.991.000
240.091.000
240.091.000
343.441.000
343.441.000
248.079.000
248.079.000
61.549.000
61.549.000
61.549.000
61.549.000
64.865.000
64.865.000
48.000
48.000
48.000
48.000
48.000
48.000
650.000
650.000
650.000
650.000
673.000
673.000
14.230.000
18.500.000
20.000.000
14.306.000
0
2.000.000
2.000.000
42.500.000
0
0
14.306.000
1.069.586.000
1.069.586.000
190.942.000
8.472.000
1.269.000.000
1.087.470.000
190.403.000
1.700.000
1.279.573.000
160.001.000
160.001.000
160.001.000
160.001.000
162.482.000
162.482.000
115.860.000
115.860.000
123.649.000
123.649.000
119.384.000
119.384.000
39.336.000
39.336.000
39.336.000
39.336.000
39.883.000
39.883.000
61.912.000
61.912.000
61.912.000
61.912.000
63.725.000
63.725.000
55.202.000
55.202.000
45.240.000
45.240.000
47.690.000
47.690.000
19.974.000
19.974.000
23.220.000
23.220.000
20.105.000
20.105.000
2.437.081.000
1.825.580.000
525.054.000
474.000.000
100.000.000
61.360.000
1.877.395.000
100.000.000
237.000.000
0
0
2.437.081.000
326.000.000
542.700.000
330.000.000
4.184.694.000
61.360.000
200.000.000
0
2.475.755.000
15.130.000
15.130.000
16.176.000
9.811.000
9.811.000
10.068.000
12.575.000
13.103.000
13.925.000
13.725.000
13.725.000
13.918.000
3.800.000
410 Expenditures without differentiation by purposes
410 Expenditures without differentiation by purposes
Membership in the International Social Security
Association (ISSA)
43 Subtotal
44 42300 SERBIAN ACADEMY OF SCIENCE AND ART
44 Subtotal
45 41200 PUBLIC PROCUREMENT ADMINISTRATION
45 Subtotal
46 41600
8
12.175.000
450 Expenditures without differentiation by purposes
ROUTES – PLOVPUT
41 Subtotal
42 12408 GEOMAGNETIC ADMINISTRATION
6
2011 - LIMIT
130 Expenditures without differentiation by purposes
ADMINISTRATION
40 Subtotal
41 12401 DIRECTORATE OF INTERNAL NAVIGABLE
2010 - budget
2011 Beneficiary’s
request (without
indexation)
7
140 Expenditures without differentiation by purposes
410 Expenditures without differentiation by purposes
360 Expenditures without differentiation by purposes
COMMISSION FOR EXAMINING
RESPONSIBILITY FOR HUMAN RIGHTS
VIOLATIONS
46 Subtotal
47 10902 MINING AGENCY
47 Subtotal
48 10901 ENERGY EFFICIENCY AGENCY
440 Expenditures without differentiation by purposes
430 Expenditures without differentiation by purposes
Improving energy efficiency in the industry
Increasing awareness of the importance of energy
efficiency and renewable energy sources
Identifying wind energy potentials in Serbia
48 Subtotal
49 41000 COMMISSARIAT FOR REFUGEES
14.230.000
70 Expenditures without differentiation by purposes
1.069.586.000
Integration of refugees
Commission on Missing Persons
49 Subtotal
50 43200 ANTI-CORRUPTION AGENCY
50 Subtotal
51 42600 COMMISSIONER FOR INFORMATION OF
360 Expenditures without differentiation by purposes
160 Expenditures without differentiation by purposes
PUBLIC IMPORTANCE AND PERSONAL
DATA PROTECTION
51 Subtotal
52 43300 EQUAL RIGHTS’ PROTECTION
160 Expenditures without differentiation by purposes
COMMISSIONER
52 Subtotal
53 43100 DIRECTORATE OF RESTITUTION
53 Subtotal
54 12500 DIRECTORATE OF RAILWAY
160 Expenditures without differentiation by purposes
450 Expenditures without differentiation by purposes
TRANSPORTATION
54 Subtotal
55 42800 STATE AGENCY FOR PEACEFUL
410 Expenditures without differentiation by purposes
RESOLUTION OF LABOR DISPUTES
55 Subtotal
56 41100 ADMINISTRATION FOR JOINT OPERATIONS
130 Expenditures without differentiation by purposes
OF GOVERNMENT BODIES
Services and goods
Capital maintenance and equipment
Capital maintenance
Capital maintenance
Reconstruction and improvement of the Palace of
Federation
Capital maintenance
Licensing Microsoft software
56 Subtotal
57 41102 NORTH-BACKA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41103 MID-BANAT ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41104 NORTH-BANAT ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41105 SOUTH-BANAT ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
in RSD
Item
1
Code
Beneficiary
Functi
on
Purposes
2010 - budget
4
5
6
2
3
41106 WEST-BACKA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41107 SOUTH-BACKA ADMINISTRATIVE DISTRICT
Fixed asset rollover
130 Expenditures without differentiation by purposes
41108 SREM ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41109 MACVA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41110 KOLUBARA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41111 THE DANUBIAN ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41112 NORTH-BRANICEVO ADMINISTRATIVE
Purchase of automobiles
Continuation of the commenced works in
investment
130 Expenditures without differentiation by purposes
DISTRICT
41113 SUMADIJA ADMINISTRATIVE DISTRICT
Compliance with the law
Payment of the remaining debts
Purchase of computers
130 Expenditures without differentiation by purposes
41114 THE MORAVIAN ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41115 BOR ADMINISTRATIVE DISTRICT
Purchase of vehicles
130 Expenditures without differentiation by purposes
41116 ZAJECAR ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41117 ZLATIBOR ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41118 THE MORAVICA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41119 RASKA ADMINISTRATIVE DISTRICT
Archives reconstruction
Carpentry works
130 Expenditures without differentiation by purposes
41120 THE RASINA ADMINISTRATIVE DISTRICT
Replacement of woodwork and electric
installations in the business premises of Raska
administrative region
130 Expenditures without differentiation by purposes
41121 THE NISAVA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41122 THE TOPLICA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41123 PIROT ADMINISTRATIVE DISTRICT
Purchase of automobiles
130 Expenditures without differentiation by purposes
41124 THE JABLANICA ADMINISTRATIVE
130 Expenditures without differentiation by purposes
DISTRICT
41125 THE PCINJA ADMINISTRATIVE DISTRICT
Severance pay to employees whose services are no
longer needed
130 Expenditures without differentiation by purposes
41126 KOSOVO ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41127 PEC ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41128 PRIZREN ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41129 KOSOVSKA MITROVICA ADMINISTRATIVE
130 Expenditures without differentiation by purposes
DISTRICT
41130 KOSOVSKO POMORAVLJE
2011 - LIMIT
8
13.855.000
13.855.000
2.750.000
14.164.000
0
17.902.000
17.517.000
17.433.000
9.727.000
9.727.000
9.941.000
10.256.000
10.256.000
10.446.000
15.571.000
15.351.000
16.047.000
13.350.453
13.350.453
2.252.000
12.945.000
0
0
10.951.000
10.951.000
238.000
1.641.000
200.000
11.184.000
0
0
0
17.739.000
17.739.000
17.414.000
15.051.000
15.051.000
16.040.000
0
11.462.000
11.601.000
11.636.000
13.150.000
13.049.119
13.040.000
26.488.645
32.792.000
25.182.000
12.067.000
9.367.000
1.200.000
1.500.000
9.518.000
0
0
18.059.000
15.559.000
15.800.000
2.500.000
0
12.948.000
12.948.000
13.212.000
19.736.000
19.559.000
20.709.000
10.315.000
9.655.000
1.000.000
9.687.000
0
10.673.000
10.673.000
10.245.000
14.565.051
14.565.051
14.106.000
1.093.949
0
8.769.000
13.346.000
8.956.000
19.444.000
18.027.000
19.251.000
6.768.000
6.368.000
6.501.000
6.129.000
5.799.000
6.063.000
10.925.000
12.437.006
11.243.000
8.977.000
387.213.098
727.550.000
38.217.000
9.151.000
403.743.629
737.522.000
71.600.000
9.849.000
384.699.000
751.965.000
38.217.000
1.426.000
4.500.000
1.400.000
2.490.000
9.500.000
2.490.000
3.800.000
14.000.000
3.800.000
800.000
850.000
800.000
10.500.000
14.800.000
10.500.000
2.104.000
1.600.000
2.204.000
23.400.000
922.000
1.400.000
2.770.000
5.400.000
2.770.000
9.814.000
12.500.000
12.500.000
130 Expenditures without differentiation by purposes
ADMINISTRATIVE DISTRICT
57 Subtotal
58 13300 MINISTRY OF TRADE AND SERVICES
2011 Beneficiary’s
request (without
indexation)
7
410 Trade and Services System regulation
Market control and supervision
Establishing a modern market of goods and
services
Improving the institutional framework for the
goods market development
Strengthening entrepreneurship and competition
in trade in RS
Improving consumer protection in the area of
services in RS
Stimulating and supporting the presence of Serbian
companies in the international market
Improving competition in the services market
Improving product and service quality in RS
Implementation of Stabilization and Association
Agreement
IPA 2009 Improving consumer protection in the
area of goods in RS
in RSD
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
2010 - budget
5
6
Development and positioning of Serbia's national
brand
Harmonization of regulations in the field of trade
and services with the EU legislation
Improving the development and strengthening the
capacity of the Consumer Protection Center MTU
13301 GOVERNMENT DIRECTORATE OF GOODS
RESERVES
58 Subtotal
59 11900 MINISTRY OF HEALTH
Forming a Trade Development Center
IPA - 2010 Market supervision
490 Ensuring functional unity between strategic and
stabilizing commodity reserves
Bringing the warehousing capacities of SDCR to
optimal level
15.092.000
2011 Beneficiary’s
request (without
indexation)
7
2011 - LIMIT
8
30.000.000
15.115.000
8.400.000
0
9.800.000
10.000.000
33.000.000
0
0
33.000.000
1.180.668.000
1.180.668.000
1.179.725.000
12.137.000
2.008.968.000
162.137.000
2.330.281.000
112.137.000
2.166.741.000
0
213.657.000
488.442.000
214.657.000
0
152.401.000
61.285.000
272.843.000
29.785.000
68.285.000
274.843.000
29.785.000
65.104.000
305.107.000
30.524.000
1.167.424.000
1.167.424.000
1.220.557.000
35.200.000
35.200.000
36.479.000
60.000.000
80.000.000
83.680.000
4.500.000
4.500.000
4.707.000
2.400.000
2.400.000
2.510.000
3.400.000
3.400.000
3.556.000
4.000.000
4.000.000
4.184.000
20.000.000
20.000.000
20.161.000
4.000.000
4.000.000
4.184.000
1.104.141.000
1.669.678.000
1.148.003.000
52.000.000
52.000.000
54.392.000
760 Expenditures without differentiation by purposes
“Health System Regulation” program
“Health Institutions Control and Supervision”
program
“Sanitary supervision” program
“Medicines and Drugs Supervision” program
“Conducting the functions of general interest in
health system” program
“Stimulating the activities for massive voluntary
blood donation” program
Program “Health care for persons serving time in
prison and taking the security measures of
mandatory psychological treatment, care and
health protection of persons with unknown place
of residence”
Public health program in the function of Biocides
Institute
Public health program in the function of
Antirabbies Institute (protection from the rabbies)
“Luis Pasteur”, Novi Sad
Public health program in the function of Virology,
Vaccine and Serum Institute “Torlak”
Public health program in the function of the
Serbian Work Medicine Institute
Program “Improving health of special groups of
population”, including the project “Roma health
care plan implementatoin”
Program “Improving health of population for
illnesses of special social and medical importance”
including the “Projcet TBC by implementing the
DOT strategy” and project “Improving the national
response to HIV/AIDS”
Program “Participating in financing construction
and equipping of health institutions”
Program “Improving the transfusion and
transplantation departments”, including the
projects: “Providing conditions for transplantation
of hematopoietic stem cells for children” and
“Providing conditions for transfusion and
transplantation of organs for adults”
Program “Health care system work quality
improvement” comprising the World Bank “DILS”
project
Program “Support to Non-governmental
Organizations” which includes the projects:
“Stimulating the activities of professional
organizations, councils and associations”;
“Activities of the Serbian anti-cancer association
and Vojvodina anti-cancer association”; “Activities
of clinical treatment and curing of HIV infected and
persons who developed AIDS” and “Public powers
entrusted to the Red Cross of Serbia”.
20.000.000
0
11.400.000
11.400.000
11.400.000
588.000.000
11.576.000.000
615.048.000
30.000.000
30.000.000
45.965.000
3.700.000.000
62.062.000
15.798.076.000
48.111.000
3.840.108.000
689.284.000
689.284.000
710.770.000
53.207.458.000
53.207.458.000
100.000.000
55.531.921.000
104.600.000
Program of “Providing compulsory health
insurance to persons without own income” Health care for persons deemed insurees under
Article 22, para. 1 of Law on Health Insurance.
IPA - 2010 Life care department development
11902 BIOMEDICINE ADMINISTRATION
59 Subtotal
60 13700 MINISTRY OF EDUCATION
13701 PRIMARY EDUCATION
760 Project “Biomedicine Administration Regulation”
980 Expenditures without differentiation by purposes
910 Expenditures without differentiation by purposes
IPA - 2008
in RSD
Item
Code
1
Beneficiary
Functi
on
Purposes
2010 - budget
4
5
6
2
3
13702 SECONDARY EDUCATION
920 Expenditures without differentiation by purposes
13703 STUDENT STANDARD
960 Expenditures without differentiation by purposes
13704 COLLEGE AND UNIVERSITY EDUCATION
940 Expenditures without differentiation by purposes
13705 STUDENT STANDARD
960 Expenditures without differentiation by purposes
13709 INSTITUTE FOR EDUCATION
980 Expenditures without differentiation by purposes
IMPROVEMENT
2011 Beneficiary’s
request (without
indexation)
7
2011 - LIMIT
8
23.712.379.000
23.712.379.000
24.806.988.000
2.920.803.000
2.920.803.000
3.015.433.000
20.817.713.000
20.817.713.000
23.012.176.000
5.416.833.000
5.416.833.000
5.555.802.000
139.349.000
143.931.000
Expenditures without differentiation by purposes
44.515.000
0
124.400.000
0
14.814.000
14.814.000
72.122.533
0
7.832.467
0
12.090.000
0
56.787.000
6.117.000
40.812.000
6.117.000
8.200.000
0
3.000.000
0
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
13710 INSTITUTE FOR EDUCATION QUALITY
980 Expenditures without differentiation by purposes
ASSESSMENT
2008 IPA Project
Developing educational standards for the end of
general high school education for four subjects;
Preparing a program and instruments of final exam
in primary schools; Conducting a survey on
programs and exams in the education system
45.096.000
8.237.000
Assessment of pilot programs in primary and
secondary education
Developing educational standards for the end of
general high school education for four subjects;
Preparing a program and instruments of final exam
in primary schools; Conducting a survey on
programs and exams in the education system
0
Assessment of pilot programs in primary and
secondary education
Developing educational standards for the end of
general high school education for four subjects;
Preparing a program and instruments of final exam
in primary schools; Conducting a survey on
programs and exams in the education system
0
0
Assessment of pilot programs in primary and
secondary education
60 Subtotal
61 10400 MINISTRY OF PUBLIC ADMINISTRATION
106.957.152.000
107.214.348.000
0
112.943.364.000
125.785.000
110.000.000
200.800.000
110.000.000
124.535.000
115.060.000
92.000.000
92.000.000
57.000.000
100.000.000
100.000.000
100.000.000
12.000.000
12.000.000
12.552.000
60.000.000
170.000.000
20.000.000
60.000.000
439.785.000
40.000.000
784.800.000
25.000.000
514.147.000
36.233.000
37.537.000
37.218.000
185.000.000
145.000.000
197.000.000
170.000.000
185.000.000
145.000.000
237.341.000
603.574.000
762.971.000.000
240.000.000
644.537.000
947.151.753.404
237.341.000
604.559.000
809.566.431.000
110 Expenditures without differentiation by purposes
AND LOCAL SELF-GOVERNMENT
Severance pays for retirement
Central system for electronic processing and
registry books warehousing
Assistance to local communities in undeveloped
units of local government
Project of establishing a Regional school for public
administration
Professional development of registrars project
Instituting a Unique Polling Roll
Electronic exchange of data on citizens - Ministry
of Public Administration and Local SelfGovernment/Ministry of Internal Affairs
61 Subtotal
62 12100 MINISTRY OF RELIGION
840 Regulation of government’s cooperation with
churches and religious communities
Implementing government’s cooperation with
churches and religious communities
Religious education
Assistance to churches and religious communities
62 Subtotal
TOTAL
Appendix 3.
A SUMMARY OF REQUESTS BY BUDGET BENEFICIARIES AND IDENTIFIED LIMITS FOR 2012
- by purpose Item
Beneficiary
Code
1
1
2
3
20100 NATIONAL PARLIAMENT
20101 NATIONAL PARLIAMENT - PROFESSIONAL
Functi
on
Purposes
4
5
110 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
DEPARTMENTS
1 Subtotal
2 10100 PRESIDENT OF THE REPUBLIC
2 Subtotal
3 10200 GENERAL SECRETARIAT OF THE
10201
10204
10205
10206
GOVERNMENT
MEDIA COOPERATION OFFICE
OFFICE OF THE GOVERNMENT’S
PRESIDENT
OFFICE OF THE GOVERNMENT’S
PRESIDENT - for European Integrations
HUMAN RESOURCE MANAGEMENT UNIT
10208
110 Expenditures without differentiation by purposes
Costs relating to preparation and granting of awards
133 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
Government officials development program
Staff records program - renewal of equipment and system supplement
10215 OFFICE FOR SUSTAINABLE
10217
10218
10219
10220
in RSD
2012 - LIMIT
938.377.000
7
788.149.000
970.646.000
1.909.023.000
130.795.000
20.000.000
31.833.000
182.628.000
1.028.429.000
1.816.578.000
145.319.000
20.860.000
34.264.000
200.443.000
367.389.000
80.498.890
393.567.000
72.478.000
36.928.000
40.335.000
41.826.000
87.588.000
6.000.000
45.194.000
94.777.000
5.215.000
1.270.000
1.270.000
44.802.000
42.998.000
415.651.000
179.570.000
34.615.000
36.764.000
34.944.000
31.625.000
21.803.000
23.319.000
21.740.000
23.852.000
35.883.220
15.420.000
238.278.000
238.278.000
36.471.820
38.040.000
50.000.000
54.549.000
50.100.000
13.300.000
52.254.000
13.300.000
22.010.000
22.240.000
69.494.000
0
24.410.000
110.633.000
26.310.000
111.440.000
66.000.000
24.091.000
180.320.000
15.645.000
25.127.000
191.831.000
11.700.000
6.800.000
0
0
0
30.000.000
0
1.825.398.000
141.257.000
141.257.000
145.174.000
145.174.000
110 Expenditures without differentiation by purposes
OFFICE OF THE NATIONAL COUNCIL FOR
COOPERATION WITH THE INTERNATIONAL
TRIBUNAL FOR CRIMINAL PROSECUTION
OF PERSONS RESPONSIBLE FOR
SERIOUS VIOLATIONS OF INTERNATIONAL
HUMANITARIAN LAW COMMITTED ON THE
TERRITORY OF FORMER YUGOSLAVIA
FROM 1991
10216
2012 Beneficiary’s
request (without
i d 6i )
DEVELOPMENT OF INSUFFICIENTLY
DEVELOPED REGIONS
OFFICE OF THE FIRST DEPUTY PRIME
MINISTER
OFFICE OF THE GOVERNMENT’S
PRESIDENT - for economic development
OFFICE OF THE GOVERNMENT’S
PRESIDENT - for social policy and social
activities
CENTRAL REGISTRY OF CONTRIBUTION
PAYERS FOR SOCIAL INSURANCE EMPLOYERS AND INSUREES
SERBIA’S COORDINATION DEPARTMENT
FOR THE MUNICIPALITIES OF PRESEVO,
BUJANOVAC AND MEDVEDJA
10221 OFFICE OF THE NATIONAL COUNCIL FOR
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
The program for financing investment projects in the municipalities of
Presevo, Bujanovac and Medvedja
The program for financing the translation and printing of books in the
Serbian and Albanian language for the first year of university studies in
Presevo and Bujanovac
The program of scholarship for 300 high school students, purchase of
student bags and school kits for students and provision of one-off cash
benefits for persons with special needs, single mothers, children without
parental care
The program for financing organizations that undertake multiethnic,
sports, cultural, religious and other activities in order to improve the
living conditions of youth
The program of simultaneous interpreting equipment purchase
110 Expenditures without differentiation by purposes
DECENTRALIZATION OF THE REPUBLIC OF
SERBIA
Preparing the Strategy for Decentralization of the Republic of Serbia
10222 OFFICE OF THE NATIONAL SECURITY
110 Expenditures without differentiation by purposes
COUNCIL
42200 EUROPEAN INTEGRATION OFFICE
42400 ANTI-CORRUPTION COUNCIL
61029 GOVERNMENT’S AIR DEPARTMENT
3 Subtotal
4 30100 CONSTITUTIONAL COURT
4 Subtotal
5 30216 HIGH JUDICIAL COUNCIL
5 Subtotal
110 Expenditures without differentiation by purposes
The services of translating acquis communautaire into the Serbian
language
360 Expenditures without differentiation by purposes
450 Expenditures without differentiation by purposes
The lacking funds for the salaries of the Unit Director and one co-pilot
who start working in 2010
Airplane insurance
General revision of motor no. 1
Finishing the works on the hangar
Purchase of new airplane Falcon 900
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
30.000.000
2.164.545.930
161.680.000
161.680.000
133.886.000
133.886.000
Item
Code
Beneficiary
1
2
3
6 30215 STATE PROSECUTORS’ COUNCIL
6 Subtotal
7 30200 JUDICIAL BODIES
30203 GOVERNMENT’S PUBLIC PROSECUTOR’S
Functi
on
Purposes
4
5
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
Introducing a modern information system
330 Expenditures without differentiation by purposes
OFFICE
30204 GOVERNMENT’S PUBLIC ATTORNEY’S
30210
30211
30214
30221
30222
30225
30226
30227
30228
OFFICE
ADMINISTRATIVE COURT
COURTS OF APPEAL
WAR CRIMES PROSECUTOR’S OFFICE
SUPREME COURT OF CASSATION
COMPANY COURT OF APPEALS
HIGHER COURTS
COURTS OF GENERAL JURISDICTION
TRADE COURTS
HIGHER PUBLIC PROSECUTOR’S OFFICES
30229 PUBLIC PROSECUTOR’S OFFICES OF
330 Expenditures without differentiation by purposes
330
330
330
330
330
330
330
330
330
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
GENERAL JURISDICTION
30232 HIGH MAGISTRATES COURT
30233 MAGISTRATE COURTS
30235 PROSECUTOR’S OFFICE FOR ORGANIZED
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
CRIME
30236 PUBLIC PROSECUTOR’S OFFICES OF
330 Expenditures without differentiation by purposes
APPEAL
7 Subtotal
8 42700 OMBUDSMAN
8 Subtotal
9 20102 STATE AUDIT INSTITUTION
9 Subtotal
10 61030 MINISTRY OF FOREIGN AFFAIRS
61031 DIPLOMATIC AND CONSULAR OFFICES
10 Subtotal
11 61040 MINISTRY OF DEFENSE
61041 DEFENSE INSPECTORATE
61042 MILITARY SECURITY AGENCY
61043 MILITARY INFORMATION AGENCY
11 Subtotal
12 10600 MINISTRY OF INTERNAL AFFAIRS
12 Subtotal
13 41300 SECURITY INFORMATION AGENCY
13 Subtotal
14 10500 MINISTRY OF FINANCE
10502 CUSTOMS ADMINISTRATION
133 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
Acquisition equipment for 53 DCO for biometric passports
Purchase of administrative equipment
Necessary construction works
Software and equipment (protected computers) for finances in MFA and
DCO - integrated system
113 Expenditures without differentiation by purposes
Health insurance of employees working abroad
Construction works on big buildings in Brussels, Paris, Washington
210 Expenditures without differentiation by purposes
Professionalization of Serbian army
Purchase of equipment
Arranging the archives and transferring the SI institute
Financing pensions of military insurees
250 Expenditures without differentiation by purposes
Participating in multinational operations
Long term residential loans for professional military personnel of the
Serbian Army
210 Expenditures without differentiation by purposes
210 Expenditures without differentiation by purposes
210 Expenditures without differentiation by purposes
Infrastructural works on the facilities of the Military and Information
Agency
310 Expenditures without differentiation by purposes
360 Expenditures without differentiation by purposes
90 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
IPA -2008 Decentralized Implementation System of the EU funds
IPA - second component
160 Expenditures without differentiation by purposes
180 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
Construction of border crossings
Construction of border crossings
Construction of border crossings
Construction of border crossings
Construction of customs houses and customs facilities
Construction of customs houses and customs facilities
Construction of customs houses and customs facilities
Providing for normal functioning and continuous technical and
technological modernization of CSIS
CSIS overall protection
2012 Beneficiary’s
request (without
i d 6i )
in RSD
2012 - LIMIT
7
58.601.000
58.601.000
2.629.355.000
300.000.000
54.548.000
54.548.000
3.406.674.000
100.000.000
83.495.000
95.768.000
205.501.000
208.175.000
668.863.000
70.008.000
240.170.000
119.796.000
1.373.801.000
4.290.182.000
527.329.000
212.325.000
176.489.000
742.110.000
76.851.000
249.382.000
121.643.000
1.201.985.000
3.870.942.000
567.743.000
419.384.000
430.364.000
819.008.000
202.954.000
1.412.851.000
803.907.000
225.179.000
1.567.572.000
168.509.000
154.429.000
177.495.000
13.916.876.000
149.101.000
149.101.000
304.950.000
304.950.000
1.615.180.000
15.000.000
65.000.000
196.932.000
14.200.295.000
132.905.000
132.905.000
244.478.000
244.478.000
1.685.056.000
0
0
0
150.000.000
4.405.843.905
308.825.000
0
3.539.511.000
322.104.000
262.153.000
6.822.001.905
63.342.999.000
3.096.916.000
33.073.730.000
55.605.000
22.910.657.000
201.371.000
281.623.000
0
5.546.671.000
47.894.440.000
0
0
0
24.800.000.000
258.920.000
0
100.000.000
11.134.000
113.964.000
183.000.000
0
11.596.000
101.276.000
150.844.000
9.500.000
123.380.499.000
46.105.101.000
46.105.101.000
3.573.386.000
3.573.386.000
210.201.000.000
3.593.044.000
0
73.217.076.000
46.636.341.000
46.636.341.000
3.765.848.000
3.765.848.000
235.100.000.000
2.638.125.000
128.000.000
203.700.000
0
26.460.000
4.991.151.000
52.268.746.000
3.156.534.000
0
0
0
0
0
0
0
716.588.168
35.400.000
0
0
24.253.570
2.481.536.302
52.268.746.000
3.097.964.000
224.200.000
545.600.000
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
5
2012 Beneficiary’s
request (without
i d 6i )
in RSD
2012 - LIMIT
7
Financial support from the EU within the Instrument for Pre-Accession
Assistance (IPA) - European funds and national co-financing
10504 GAMES OF CHANCE ADMINISTRATION
10507 TOBACCO ADMINISTRATION
110 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
Purchase of equipment for public security for new business premises
210.000.000
35.353.000
24.984.000
211.125.000
35.419.000
29.122.000
0
Electricity use services for the existing and new business premises
730.000
761.000
Purchase of a photocopying maching for the new business premises
0
Capital maintenance of buildings and facilities and project planning,
capital mainenance of communication and electricity lines
0
10508 ANTI-LAUNDERING ADMINISTRATION
133
10509 FOREIGN CURRENCY INSPECTORATE
10510 FREE TRADE ZONES ADMINISTRATION
10511 PUBLIC DEBT ADMINISTRATION
133
410
110
170
110
40200 TAX ADMINISTRATION
14 Subtotal
15 10300 MINISTRY OF JUSTICE
10301 CRIMINAL SANCTIONS ENFORCEMENT
Purchase of 10 thermal-accumulation stoves for the new business
premises
Purchase of computer equipment
Purchase of necessary office furniture for complete furnishing of the
assistant director office in the new business premises
Mandatory fee cost
Current maintenance of the two new photocopying machines
(mandatory regular service within the guarantee time, after a certain
number of copies and further on)
Office materials
Expenditures without differentiation by purposes
IPA - 2010
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Software
360 Expenditures without differentiation by purposes
340 Organizing, enforcing and supervising execution of criminal penalties
AGENCY
10302 DIRECTORATE FOR MANAGING SEIZED
Significant increase in the scope of activities - increasing the number of
arrested persons by 2013
360 Expenditures without differentiation by purposes
PROPERTY
10303 JUDICIAL ACADEMY
15 Subtotal
16 10700 MINISTRY OF AGRICULTURE, FORESTRY
AND WATER MANAGEMENT
10701 GOVERNMENT DIRECTORATE OF WATERS
360 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
630 Expenditures without differentiation by purposes
0
0
1.000
0
0
200.000
200.000
86.452.000
3.000.000
105.139.000
18.300.000
24.788.000
34.900.000.000
5.969.351.000
46.610.000
314.945.140.040
395.065.000
0
0
56.575.000
3.000.000
106.002.000
12.112.000
27.288.000
48.000.000.000
6.491.364.000
46.610.000
353.200.394.000
407.374.000
5.555.892.000
6.009.103.000
719.601.000
146.170.000
58.162.000
79.331.100
6.808.051.100
60.081.000
35.231.000
6.657.959.000
2.833.200.000
2.442.935.000
12.629.000
2.888.000
100.000.000
100.000.000
73.571.000
73.571.000
50.000.000
164.320.000
50.000.000
37.728.000
91.600.000
85.886.000
Dams and accumulations, Program for construction, reconstruction and
improvement of water management facilities
Water protection, Program for construction, reconstruction and
improvement of water management facilities
International cooperation, Program for construction, reconstruction and
improvement of water management facilities
10702 AGRICULTURAL LAND ADMINISTRATION
10703 GENERAL INSPECTORATE OF
420 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
AGRICULTURE, FORESTRY AND WATER
MANAGEMENT
10704 DIRECTORATE OF REFERENCE NATIONAL
LABORATORIES
10705 AGRARIAN PAYMENTS ADMINISTRATION
420 Expenditures without differentiation by purposes
12001 FOREST ADMINISTRATION
41900 VETERINARY ADMINISTRATION
42000 PLANT PROTECTION ADMINISTRATION
16 Subtotal
17 13000 MINISTRY OF ECONOMY AND REGIONAL
420 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
760 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
IPA Project
Analysis of breeds in laboratories
Workshops, printing services, informing
410 Expenditures without differentiation by purposes
DEVELOPMENT
FIAT - founding stake and special importance investments
Program for distributing and using the funds of credit support to
companies via the Development Fund
The program of measures for alleviating the negative effects of global
economic crisis in the Republic of Serbia
Start-up loans for beginners via the Development Fund
Earmarked loans for stimulating production and exports
Program for stimulating new direct investments and opening of new jobs
- greenfield
Export-promotion program by means of loans and export insurance,
increase in capital of AOFI
40.000.000
32.454.000
18.692.777.000
181.300.000
1.730.600.000
36.850.000
5.000.000
5.000.000
500.000
24.017.347.000
15.480.685.000
161.966.000
1.483.468.000
36.566.000
5.215.000
2.086.000
0
19.995.448.000
1.060.845.000
6.633.000.000
1.032.611.000
6.918.219.000
3.000.000.000
3.000.000.000
5.010.000.000
1.000.000.000
800.000.000
5.225.430.000
1.043.000.000
834.400.000
1.400.000.000
1.400.000.000
0
Item
Code
Beneficiary
1
2
3
Functi
on
Purposes
4
5
412 Expenditures without differentiation by purposes
Reimbursement of salaries and improvement of work conditions for the
disabled persons
NES transfer for active employment measures
Resolving the work status of redundant employees (cash compensation,
special cash compensation and severance pays)
Payment of late salaries to the Zastava Group
Project “Support to the national efforts for promoting employment of
youth and managing migrations - financing the programs for the Youth
Employment Fund”.
Cofinancing the Operative program - 4. IPA component - Human
Resource Development
473 Expenditures without differentiation by purposes
Construction of accommodation capacities in the location of Jabucko
ravniste
PE Skijalista Srbije
PE Stara planina
Tourist Organization of Serbia
Loans for stimulating the quality of hospitality supply
Tourism development projects
National tourism development corporation
Park Palic d.o.o.
474 Expenditures without differentiation by purposes
Program for stimulating balanced regional development - crediting
undeveloped municipalities via the Development Fund (for devastated
areas, processing industry and for stimulating entrepreneurship; loans
for investment purposes - building facilities, extending the existing
facilities, purchase of equipment)
Cluster development program
Program for stimulating companies to invest into innovation
Program of support for the new initiatives for stimulating
entrepreneurship
Municipality assistance program through cofinancing the mandatory
part of participation for priority projects financed from grants
2012 Beneficiary’s
request (without
i d 6i )
in RSD
2012 - LIMIT
7
71.035.000
61.124.000
880.000.000
5.650.000.000
700.000.000
3.655.000.000
5.000.000.000
5.454.890.000
0
0
150.000.000
221.140.000
0
225.936.000
500.000.000
2.512.575.150
100.000.000
300.000.000
400.000.000
1.080.000.000
74.250.000
40.000.000
1.199.407.000
521.500.000
871.800.000
100.000.000
220.000.000
417.200.000
552.580.000
10.430.000
41.720.000
393.120.000
2.100.000.000
150.000.000
80.000.000
1.877.400.000
28.000.000
25.000.000
22.000.000
17.000.000
90.000.000
0
100.000.000
0
42.000.000
55.000.000
0
0
5.500.000
0
15.000.000
15.000.000
53.000.000
0
100.000.000
0
10.000.000
50.000.000
429.168.000
108.000.000
10.000.000
54.549.000
401.547.000
117.826.000
129.175.000
122.400.000
40.743.495.150
91.453.000
40.200.000
151.872.000
87.374.000
35.464.528.000
99.350.000
41.929.000
Competition development support program: fast growing SME support
project, business services development support project
Program for co-financing local initiatives for SME development
(including business incubators)
SME support program for introducing e-business
Entrepreneurship development support program for particularly
sensitive target groups
Program of support for SME’s facing serious financial problems that can
jeopardize their survival (second chance)
Program for support to SME’s for implementing international QMS
standard and product certification
EQUITY & VENTURE CAPITAL FUND development support program
Program for the support to old art crafts and hand made manufacturing
13001 DIRECTORATE OF MEASURES AND
IPA - 2010 South and South-West Serbia support program
490 Expenditures without differentiation by purposes
Accommodation costs for economic advisors from DCO
130 Expenditures without differentiation by purposes
PRECIOUS METALS
13002 STANDARDIZATION INSTITUTE
17 Subtotal
18 10900 MINISTRY OF MINING AND ENERGY
130 Expenditures without differentiation by purposes
430 Expenditures without differentiation by purposes
Preparation of new Energy Development Strategy until 2025
City construction land fee for the business premises of the Ministry
0
Energy Development Strategy until 2025 implementation program
Subsidies to RS heat plants (KfW) phase 4.
Preparing analyses and bases for the six by-laws and upgrade of the
information system
Monitoring and enforcing the energy and climate package of the EU and
energy efficiency within the RS Action Plan
Preparing the Program of Urgent Measures for reducing the impact of
high oil and gas prices
Law confirming the Statute of the International Renewable Energy
Agency (IRENA) for RS membership in the Agency
Program for stimulating thermal energy generation from renewable
sources
Forming the certification system for bio-fuel manufacturers
Forming new institutions from the area of energy: Institution for
strategic planning in energy sector, Energy efficiency fund, and
Mandatory oil reserves institution
20.000.000
300.000.000
20.860.000
0
0
6.480.000
6.759.000
0
500.000
522.000
15.000.000
2.820.000
0
2.941.000
30.000.000
31.290.000
Item
Code
Beneficiary
1
2
3
Functi
on
Purposes
4
5
440 Expenditures without differentiation by purposes
RS share in the Government of Japan’s grant in the Mining Waste
Management Project - flotation tailings pond in the Bor region, grant
Mining development support and removing detrimental consequences
created by mineral ore exploitation program
18 Subtotal
19 13100 MINISTRY OF INFRASTRUCTURE
19 Subtotal
20 13200 MINISTRY OF TELECOMMUNICATIONS AND
450 Expenditures without differentiation by purposes
460 Expenditures without differentiation by purposes
INFORMATION SOCIETY
SEELight Project together with the Corridor X project is a part of the
HIPERB Program (Hellenic Plan for the Economic Reconstruction of the
Balkans)
Academic scientific research and education network of Serbia
Digitalization
IPA - 2010 Support to transferring to digital broadcasting in RS
IPA - 2010 Government Administration Reform
20 Subtotal
21 13400 MINISTRY OF LABOR AND SOCIAL POLICY
2012 Beneficiary’s
request (without
i d 6i )
Financing program and project activities of veteran and disability
associations
Improving the position of the veteran population - continuation of PTSP
projects and forming Veteran Centers
Forced collection
40 Budget compensations for maternity leave
Budget compensations for children and families - child allowance
7
3.300.500.000
2.129.402.000
20.000.000
20.860.000
25.000.000
3.851.953.000
26.035.053.900
26.035.053.900
26.075.000
2.379.988.000
20.255.049.000
20.255.049.000
260.700.000
203.279.000
40.000.000
100.000.000
285.000.000
685.700.000
41.720.000
104.300.000
285.000.000
162.500.000
125.000.000
921.799.000
14.736.600.000
0
14.495.716.000
41.200.000
30.300.000
40.619.000
31.603.000
33.074.424
20.000.000
15.000.000
50.000.000
6.564.000
25.900.000
0
0
0
0
0
6.846.000
5.748.000
4.431.000
49.211.000
51.327.000
5.000.000
100.000.000
22.269.600.000
0
104.300.000
20.620.000.000
11.016.000.000
10.200.000.000
5.583.600.000
5.170.000.000
12.700.000
76.398.000
12.700.000
71.400.000
19.500.000
5.000.000
3.849.338.000
17.552.000.000
65.000.000
19.500.000
5.000.000
0
4.189.760.000
18.700.963.000
65.000.000
10.700.000
11.673.000
3.466.000.000
0
300.000.000
59.000.000
116.622.000
27.692.000.000
0
0
118.166.000
29.661.400.000
75.000.000
1.900.000
636.965.000
368.600.000
22.200.000
19.747.000
2.236.000
679.695.000
368.600.000
22.200.000
5.500.000
4.750.000
13.359.000
13.933.000
10 Expenditures without differentiation by purposes
Veteran and Disability Protection Rights
Delivery services from Agreement with Postanska stedionica for paying
the Veteran and Disability Protection Rights
Celebrating important dates from the Serbian history - festivals
Reconstruction and improvement of monuments in the country and
abroad
Monument and cript at Zebrnjak
Monument to the Unknown hero on the Avala
Monument of gratitude to France
Monumental complex Sremski front
Serbian military graveyard in Thessaloniki - Zejtilnik
Maintenance of monuments in the country and abroad
Services from the software maintenance contract in the area of veteran
and disability protection and payment of doctor commissions
in RSD
2012 - LIMIT
Budget compensations for children and families - parent allowance
Budget compensations for families and children - Mothers refugees,
Children in pre-school institutions with mental problems and children
without parental care, and one-off assistance
Fixed costs - commission of PS for child allowance payments
Contracted services - printing forms for child and parent allowance,
printing Demographic Survey and work of the ombudsman and
maintenance of application software
Grants from the budget to non-governmental organizations
70 Expenditures without differentiation by purposes
Wages of employees in social protection institutions
Rights of natural entities in the area of social protection
Investments into social protection institutions
Transfers by Social protection improvement program passed by the
minister
Monitoring the level of rights to the material assistance and
development of social protection services locally
Forming regional centers for family accommodation and employing new
workers in social work centers
Founding Social Protection Chamber
90 Expenditures without differentiation by purposes
Transfer of funds to the RF PIO from RS budget
Reimbursement of the paid VAT on import of motor vehicles for the
disabled persons, war veterans with disabilities and the civilians disabled
during the war
Age pension for Jovanka Broz
410 Expenditures without differentiation by purposes
Financing the work of the Solidarity Fund
Financing the work of the Social Economic Council
IPA - 2008 Support to Serbia’s participation in the Community programs
13401 SECURITY AND SAFETY AT WORK
ADMINISTRATION
410 Expenditures without differentiation by purposes
Item
Code
Beneficiary
Functi
on
Purposes
1
2
3
4
5
13402 GENDER EQUALITY ADMINISTRATION
50010 LABOR INSPECTORATE
21 Subtotal
22 13500 MINISTRY OF SCIENCE AND
Implementing the activities contained in the Action Plan for
implementing the Strategy of Security and Safety at Work in RS for a
period 2009-2012.
410 Expenditures without differentiation by purposes
Activities regarding implementation of the Action Plan for conducting
the national strategy for improving the position of women
410 Expenditures without differentiation by purposes
140 Expenditures without differentiation by purposes
TECHNOLOGICAL DEVELOPMENT
2012 Beneficiary’s
request (without
i d 6i )
in RSD
2012 - LIMIT
7
1.000.000
7.157.000
0
7.465.000
4.674.000
30.365.000
108.352.875.424
3.130.000
31.477.000
104.759.537.000
10.300.980.000
9.340.449.000
2.071.929.000
0
1.196.566.000
934.817.000
4.948.448.000
19.452.740.000
0
0
0
9.340.449.000
522.838.000
267.000.000
311.837.000
153.000.000
40.000.000
67.800.000
142.000.000
4.660.000
20.000.000
10.000.000
1.500.000
90.000.000
85.535.270
190.000.000
563.220.000
278.481.000
277.581.000
143.000.000
0
0
138.000.000
5.084.000
20.860.000
10.430.000
1.500.000
0
52.150.000
83.407.000
190.000.000
300.000.000
300.000.000
178.000.000
300.000.000
160.000.000
100.000.000
60.000.000
0
250.000.000
0
25.000.000
15.000.000
30.000.000
0
2.150.000
2.150.000
20.000.000
20.000.000
1.000.000.000
0
1.000.000.000
The program of cofinancing integral and interdisciplinary researches
Establishing a national importance institute in accordance with the
Strategy and the Law
Doctoral and academic studies project cofinancing program
Program for founding the centers of excellence
22 Subtotal
23 14000 MINISTRY OF ENVIRONMENT AND SPATIAL
560 Expenditures without differentiation by purposes
PLANNING
Projects from the area of geological research
Projects from the area of environment
Financing the Nature Protection Institute
Financing the Ionizing Rays Protection Agency
Financing the Chemicals Agency
Cofinancing protected natural goods
Contributions to international organizations
Projects from the area of environment - HBO
Indemnization for protected natural species
JDS project 3 - Third joint Danube research
Strategy implementation monitoring plan
National Environmental protection program implementation
620 Expenditures without differentiation by purposes
Financing the activities of the Spatial Planning Agency
Financing the reconstruction of the Kolubara region hit by earthquake
Preparation of spatial and urban plans
The “Clean Serbia” project - building local infrastructure, removing
unauthorized waste depots and other pollutants in order to protect the
environment
Financing urgent interventions and assisting people in case of the
elements
Financing the building of the Drina bridge on the location BacevciFakovici with access roads and new border crossing
Project “Border Crossing Kotroman Reconstruction”, which is in the
protected natural good Mokra Gora
Financing the building of a residential building for the returnees to
Kosovo and Metohija in Kosovska Mitrovica and Zubin Potok, and
building the church facilities in the Zica Monastery
Financing the building of database and information system for licenses,
investment projects, urban and spatial planning
Financing the founding and work of the Social Counselling Agency
Subsidizing interest on loans for construction of 5,000 residential units
14001 ENVIRONMENTAL PROTECTION AGENCY
Financing implementation of the Law on Social Living
Conducting a Program of Training for Managers of residential buildings
and conducting a pilot project for about 50 residential buildings in
around 20 towns in Serbia
Construction of 500 publicly owned residential units
IPA - 2010 South and South-West Serbia support program
560 Expenditures without differentiation by purposes
50026 ENVIRONMENTAL PROTECTION FUND
560 Expenditures without differentiation by purposes
23 Subtotal
24 13800 MINISTRY OF YOUTH AND SPORTS
13801 SERBIAN ANTI-DOPING AGENCY
13802 PHYSICAL EDUCATION INSTITUTES
810 Functioning of the Ministry
Conducting programs and projects in the area of youth policy
Conducting programs and projects in the area of sports
Conducting programs and projects in the area of investments
810 Functioning of the Serbian Antidoping Agency
Introducing regular doping controls in national competitions
The project of labeling pharmaceutical products based on the Law on
Sports (doping)
Implementation of the Adams base and athlete training
Cooperation with the Ministry of Internal Affairs and Customs
Administration for preventing crimes and offences, under the Law on
Doping Prevention in Sports
Project for support to prevention and education in rehabilitation
810 Functioning of the NSO
25.000.000
0
0
27.274.000
100.818.877
23.562.000
4.202.701.147
124.853.000
192.250.000
2.228.158.020
524.880.000
14.398.000
16.000.000
47.099.000
26.104.000
3.479.340.000
120.076.000
201.573.000
2.011.135.000
450.000.000
15.345.000
16.688.000
650.000
1.020.000
678.000
1.064.000
1.200.000
0
1.000.000
82.841.000
0
90.002.000
Item
Code
Beneficiary
Functi
on
Purposes
1
2
3
4
5
13803 YOUNG TALENTS FUND
50025 SPORTS FINANCING BUDGET FUND
24 Subtotal
25 11800 MINISTRY OF CULTURE
11801 CULTURE INSTITUTIONS
25 Subtotal
26 12300 MINISTRY OF THE DIASPORA
26 Subtotal
27 13900 MINISTRY FOR KOSOVO AND METOHIJA
Maintenance of the Sports Hall
Improvement of the trim track
Revitalization of the center for motor and medical researches
Material expenses
Tests in camps
980 Student scholarships
European integration scholarships - IPA project
810 Construction of sports capacities for the disabled persons
Reconstruction of sports capacities to adjust them for use of the
disabled persons
820 Expenditures without differentiation by purposes
Regular activities of the governmental bodies
Intengible assets
Protection, Program of distributing and using the funds adopted by the
Serbian Government
Cinematography, Program of distributing and using the funds adopted by
the Serbian Government
Scene and music art, Program of distributing and using the funds
adopted by the Serbian Government
Visual art, Program of distributing and using the funds adopted by the
Serbian Government
Literature, Program of distributing and using the funds adopted by the
Serbian Government
Programs in Kosovo and Metohija, people’s, amature and national
minorities’ creations
International cultural cooperation, Program of distributing and using the
funds adopted by the Serbian Government
Supreme artistic achievements, Program of distributing and using the
funds adopted by the Serbian Government
Media competitions, Program of distributing and using the funds
adopted by the Serbian Government
Subsidies to PE’s for informing
National awards
Transfers to the second level of power for protection of monuments
Restoration of the Chilandar
Grants to cultural associations
820 Expenditures without differentiation by purposes
Programs of culture institutions in accordance with the Culture Law regular financing
Investments into the preparation of projects for reconstruction of
institutions, renovation of installed equipment and purchase of new,
purchase of art works, museum archives, etc.
Matica srpska, court penalties
410 Expenditures without differentiation by purposes
Lease of satellite services for broadcasting the program of Public Service
RTS for Europe, North America and Australia for a period of 2011 to
2013
Improving the position and protection of rights and interests of the
Diaspora members and Serbs in the region
Improving cooperation/work of organizations and associations in the
Diaspora and organizations and associations of organizations of Serbs in
the region
Changed and supplemented release of a DVD “Investment opportunities
in the municipalities and cities of Serbia” and supplemented issue of the
brochure “Why invest into Serbia”
Preserving, using and cherishing the Serbian language and the Cyrillic
script
110 Expenditures without differentiation by purposes
Salaries to local governments in Kosovo and Metohija
Harvest in Kosovo and Metohija
Firewood in Kosovo and Metohija
Investment building for IRL
Equipping houses of the returnees in Kosovo and Metohija
Material costs for schools in Kosovo and Metohija
Reconstruction of schools in Kosovo and Metohija
Improving health care in Kosovo and Metohija
Reconstruction of cultural goods in Kosovo and Metohija
Funds for the returnees in Kosovo and Metohija
Participation for the IPA program
Restructuring and ownership transformation of legal entities from the
Serbian regions in Kosovo and Metohija
Agriculture development in the Serbian regions in Kosovo and Metohija
Overcoming the problems of electricity supply for the Serbian regions in
Kosovo and Metohija
2012 Beneficiary’s
request (without
i d 6i )
34.416.000
in RSD
2012 - LIMIT
7
7.880.000
10.430.000
0
10.000.000
0
0
614.635.000
0
7.880.000
15.736.000
3.923.853.020
120.002.000
90.000.000
2.000.000
15.736.000
3.565.242.000
106.515.000
56.684.000
527.000
285.000.000
135.590.000
370.000.000
253.240.000
150.000.000
76.139.000
45.000.000
31.045.000
270.000.000
174.129.000
60.000.000
41.720.000
265.000.000
144.479.000
120.000.000
57.981.000
160.000.000
200.000.000
260.000.000
113.166.000
200.000.000
274.926.000
485.000.000
70.000.000
79.998.000
2.227.192.000
233.212.000
73.010.000
83.438.000
1.937.192.000
1.150.000.000
794.808.000
520.000.000
47.000.000
6.976.192.000
85.568.000
147.000.000
43.703.000
4.978.504.000
90.826.000
120.000.000
125.160.000
3.500.000
3.651.000
17.000.000
17.731.000
700.000
730.000
9.000.000
235.768.000
439.401.000
2.898.000.000
35.719.000
88.055.000
659.950.000
40.000.000
63.000.000
25.000.000
5.000.000
208.131.000
500.000
9.387.000
247.485.000
351.974.000
3.112.314.000
38.969.000
96.066.000
300.000.000
43.639.000
68.732.000
27.274.000
5.455.000
0
164.265.000
522.000
100.000.000
0
100.000.000
0
100.000.000
0
20.783.000
5.740.000
2.048.000
650.000.000
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
5
2012 Beneficiary’s
request (without
i d 6i )
in RSD
2012 - LIMIT
7
Reconstruction of the Serbian monasteries in Kosovo and Metohija
Improving the education system in the Serbian regions in Kosovo and
Metohija
Preservation of the Serbian cultural heritage in Kosovo and Metohija
Construction of the nursery school Djurdjevak in Brnjica in Kosovo and
Metohija
Public company for development and improvement of information by
means of electronic media in the Serbian language in AP Kosovo and
Metohija
27 Subtotal
28 14200 MINISTRY OF HUMAN AND MINORITY
110 Expenditures without differentiation by purposes
RIGHTS
50029 NATIONAL MINORITIES BUDGET FUND
28 Subtotal
29 14100 MINISTRY FOR THE NATIONAL
160 Expenditures without differentiation by purposes
160 Expenditures without differentiation by purposes
410 Expenditures without differentiation by purposes
INVESTMENT PLAN
Corridor 10
Belgrade-Southern Adriatic
Construction of modern Serbian roads to major cities
Improvement of local communal infrastructure
Support to infrastructural development in the most underdeveloped
municipalities
Infrastructure development in big cities - the Zemun-Borca bridge
Development of economic infrastructure
Development of infrastructure for improving the standard of people
(education, health, culture)
29 Subtotal
30 40100 STATE LEGISLATION SECRETARIAT
30 Subtotal
31 40300 STATE DEVELOPMENT AGENCY
31 Subtotal
32 40400 STATE STATISTICS AGENCY
32 Subtotal
33 40500 STATE ADMINISTRATION FOR
110 Expenditures without differentiation by purposes
140 Expenditures without differentiation by purposes
National Development Plan
Development of a macroeconomic model of economic growth
Forming the research and development observatory for SME’s.
130 Expenditures without differentiation by purposes
Population, household and apartments census, 2011
Agriculture census 2011
Debt for construction land fee
410 Expenditures without differentiation by purposes
HYDROMETEOROLOGY
Contributions - membership fees to international organizations
33 Subtotal
34 40600 STATE ADMINISTRATION OF GEODESY
34 Subtotal
35 40800 STATE ADMINISTRATION OF SEISMOLOGY
410 Expenditures without differentiation by purposes
Preparing the national base of geospatial data of RS
410 Expenditures without differentiation by purposes
Seismology station network maintenance program
35 Subtotal
36 40700 DIRECTORATE OF STATE PROPERTY
36 Subtotal
37 11601 STATE ADMINISTRATION OF INFORMATICS
130 Expenditures without differentiation by purposes
BC Horgos
Managing immovable property owned by the state (business premises,
apartments, garages) until their distribution
Disposing of immovables owned by the state (acquisition, alienation,
exchange, lease, use, etc.)
Managing and disposing of state-owned equipment
Information system implementation and development
Health care and insurance of employees
Master plan for disposing of the immovables of RS Army
Sales and Purchase of apartments according to the Regulation
Reconstruction of the building in Belgrade - 15 Uzicka St.
Reconstruction of the building in Belgrade - 28 Uzicka St.
140 Expenditures without differentiation by purposes
AND INTERNET
Development of e-government in RS for a period 2011-2013
Replacement and upgrading of existing equipment
37 Subtotal
39 10202 DEMINING CENTER
39 Subtotal
40 64040 INTELECTUAL PROPERTY
250 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
ADMINISTRATION
40 Subtotal
41 12401 DIRECTORATE OF INTERNAL NAVIGABLE
450 Expenditures without differentiation by purposes
ROUTES – PLOVPUT
Purchase of equipment for marking the navigable route
Purchase of equipment for marking the navigable route
147.867.000
0
28.500.000
0
42.700.000
0
0
156.000.000
5.137.823.000
156.000.000
4.365.210.000
130.816.000
384.400.000
10.000.000
525.216.000
137.191.000
296.629.000
2.086.000
435.906.000
142.225.000
4.000.000.000
15.000.000.000
30.000.000.000
1.500.000.000
149.008.000
0
0
5.000.000.000
0
1.500.000.000
1.500.000.000
3.000.000.000
800.000.000
3.000.000.000
500.000.000
2.500.000.000
58.442.225.000
77.541.000
77.541.000
43.425.000
804.024.004
500.000.000
10.649.008.000
85.530.000
85.530.000
46.582.000
0
0
0
46.582.000
647.374.000
39.305.000
180.160.000
0
866.839.000
1.185.193.000
44.408.000
1.229.601.000
1.444.056.000
450.000.000
1.894.056.000
1.145.585.000
48.448.000
1.194.033.000
1.412.613.000
0
1.412.613.000
25.784.000
600.000
26.384.000
110.778.000
38.750.000
27.379.000
600.000
27.979.000
121.547.000
40.416.000
7.300.000
7.614.000
18.628.000
184.986.000
17.418.000
0
2.000.000
1.356.000
313.000
0
0
0
190.664.000
22.582.000
5.000.000
1.000.000
28.582.000
11.872.000
11.872.000
22.479.000
5.215.000
1.000.000
28.694.000
13.051.000
13.051.000
109.409.000
109.409.000
112.128.000
112.128.000
165.984.000
3.031.000
7.746.000
181.074.000
3.031.000
0
43.425.000
584.558.548
39.305.022
180.160.434
2.000.000
1.300.000
780.000
5.450.000
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
5
Implementation of RIS on the Danube
Equipment insurance
Health care of employees
41 Subtotal
42 12408 GEOMAGNETIC ADMINISTRATION
42 Subtotal
43 50011 SOCIAL INSURANCE ADMINISTRATION
410 Expenditures without differentiation by purposes
410 Expenditures without differentiation by purposes
Membership in the International Social Security Association (ISSA)
43 Subtotal
44 42300 SERBIAN ACADEMY OF SCIENCE AND ART
140 Expenditures without differentiation by purposes
44 Subtotal
45 41200 PUBLIC PROCUREMENT ADMINISTRATION
410 Expenditures without differentiation by purposes
45 Subtotal
46 41600
360 Expenditures without differentiation by purposes
COMMISSION FOR EXAMINING
RESPONSIBILITY FOR HUMAN RIGHTS
VIOLATIONS
46 Subtotal
47 10902 MINING AGENCY
47 Subtotal
48 10901 ENERGY EFFICIENCY AGENCY
48 Subtotal
49 41000 COMMISSARIAT FOR REFUGEES
49 Subtotal
50 43200 ANTI-CORRUPTION AGENCY
50 Subtotal
51 42600 COMMISSIONER FOR INFORMATION OF
440 Expenditures without differentiation by purposes
430 Expenditures without differentiation by purposes
Improving energy efficiency in the industry
Increasing awareness of the importance of energy efficiency and
renewable energy sources
Identifying wind energy potentials in Serbia
70 Expenditures without differentiation by purposes
Integration of refugees
Commission on Missing Persons
360 Expenditures without differentiation by purposes
160 Expenditures without differentiation by purposes
COMMISSIONER
52 Subtotal
53 43100 DIRECTORATE OF RESTITUTION
53 Subtotal
54 12500 DIRECTORATE OF RAILWAY
160 Expenditures without differentiation by purposes
450 Expenditures without differentiation by purposes
TRANSPORTATION
54 Subtotal
55 42800 STATE AGENCY FOR PEACEFUL
410 Expenditures without differentiation by purposes
RESOLUTION OF LABOR DISPUTES
55 Subtotal
56 41100 ADMINISTRATION FOR JOINT OPERATIONS
Services and goods
Capital maintenance and equipment
Capital maintenance
Capital maintenance
Reconstruction and improvement of the Palace of Federation
Capital maintenance
Licensing Microsoft software
56 Subtotal
57 41102 NORTH-BACKA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41103 MID-BANAT ADMINISTRATIVE DISTRICT
41104 NORTH-BANAT ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
41105 SOUTH-BANAT ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41106 WEST-BACKA ADMINISTRATIVE DISTRICT
130 Expenditures without differentiation by purposes
41107 SOUTH-BACKA ADMINISTRATIVE DISTRICT
Fixed asset rollover
130 Expenditures without differentiation by purposes
41108
41109
41110
41111
130
130
130
130
41112 NORTH-BRANICEVO ADMINISTRATIVE
7
3.800.000
1.000.000
181.561.000
60.840.000
60.840.000
21.381.000
0
3.963.000
0
188.068.000
68.327.000
68.327.000
23.369.000
900.000
22.281.000
939.000
24.308.000
343.441.000
343.441.000
261.151.000
261.151.000
61.549.000
61.549.000
68.722.000
68.722.000
48.000
48.000
650.000
650.000
18.680.000
30.000.000
50.000
50.000
710.000
710.000
15.185.000
0
2.000.000
50.680.000
1.069.586.000
191.242.000
8.172.000
1.269.000.000
160.001.000
160.001.000
0
0
15.185.000
1.131.880.000
193.127.000
1.460.000
1.326.467.000
168.262.000
168.262.000
136.800.000
136.800.000
126.040.000
126.040.000
39.336.000
39.336.000
61.912.000
61.912.000
41.533.000
41.533.000
67.249.000
67.249.000
46.320.000
46.320.000
50.728.000
50.728.000
28.440.000
28.440.000
21.156.000
21.156.000
1.825.580.000
346.054.000
94.400.000
308.000.000
404.800.000
330.000.000
3.308.834.000
1.970.768.000
0
237.000.000
0
0
165.000.000
0
0
2.372.768.000
15.130.000
9.811.000
17.008.000
10.632.000
13.113.000
14.291.000
13.725.000
14.695.000
13.855.000
14.934.000
0
17.277.000
9.727.000
10.256.000
15.351.000
18.150.000
10.482.000
11.033.000
16.901.000
13.350.453
13.599.000
0
0
130 Expenditures without differentiation by purposes
OF GOVERNMENT BODIES
SREM ADMINISTRATIVE DISTRICT
MACVA ADMINISTRATIVE DISTRICT
KOLUBARA ADMINISTRATIVE DISTRICT
THE DANUBIAN ADMINISTRATIVE
DISTRICT
in RSD
2012 - LIMIT
160 Expenditures without differentiation by purposes
PUBLIC IMPORTANCE AND PERSONAL
DATA PROTECTION
51 Subtotal
52 43300 EQUAL RIGHTS’ PROTECTION
2012 Beneficiary’s
request (without
i d 6i )
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Purchase of automobiles
Continuation of the commenced works in investment
130 Expenditures without differentiation by purposes
DISTRICT
Compliance with the law
Payment of the remaining debts
Purchase of computers
300.000
10.951.000
238.000
200.000
11.805.000
0
0
0
Item
1
Beneficiary
Code
2
3
41113 SUMADIJA ADMINISTRATIVE DISTRICT
41114 THE MORAVIAN ADMINISTRATIVE
Functi
on
Purposes
4
5
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
DISTRICT
41115
41116
41117
41118
BOR ADMINISTRATIVE DISTRICT
ZAJECAR ADMINISTRATIVE DISTRICT
ZLATIBOR ADMINISTRATIVE DISTRICT
THE MORAVICA ADMINISTRATIVE
DISTRICT
130
130
130
130
41119 RASKA ADMINISTRATIVE DISTRICT
130
41120 THE RASINA ADMINISTRATIVE DISTRICT
41121 THE NISAVA ADMINISTRATIVE DISTRICT
41122 THE TOPLICA ADMINISTRATIVE DISTRICT
130
130
130
41123 PIROT ADMINISTRATIVE DISTRICT
41124 THE JABLANICA ADMINISTRATIVE
130
130
Purchase of vehicles
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Archives reconstruction
Carpentry works
Expenditures without differentiation by purposes
Replacement of woodwork and electric installations in the business
premises of Raska administrative region
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Purchase of automobiles
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
DISTRICT
2012 Beneficiary’s
request (without
i d 6i )
in RSD
2012 - LIMIT
7
17.739.000
18.375.000
15.051.000
2.000.000
11.501.000
13.049.119
34.202.000
16.901.000
0
12.098.000
13.755.000
26.538.000
12.067.000
1.100.000
12.878.000
0
0
18.269.000
17.059.000
1.000.000
12.948.000
19.587.000
9.705.000
10.673.000
0
13.919.000
21.844.000
10.292.000
0
10.798.000
14.565.051
14.865.000
9.711.000
18.027.000
6.168.000
5.799.000
0
9.477.000
20.190.000
6.624.000
6.383.000
12.387.000
11.831.000
9.151.000
396.773.623
737.522.000
85.020.000
2.700.000
10.400.000
408.967.000
797.995.000
39.817.000
1.452.000
9.500.000
14.000.000
900.000
2.576.000
3.963.000
834.000
14.500.000
2.340.000
22.000.000
5.100.000
10.952.000
978.000
1.460.000
2.889.000
13.500.000
53.200.000
13.500.000
15.635.000
8.400.000
0
4.300.000
10.000.000
2.000.000
0
0
2.000.000
1.180.668.000
162.137.000
2.327.787.000
4.000.000
214.657.000
68.285.000
274.843.000
29.785.000
1.192.826.000
112.137.000
2.199.014.000
0
161.813.000
69.548.000
325.595.000
32.368.000
1.167.424.000
1.273.041.000
35.200.000
38.047.000
80.000.000
4.500.000
87.278.000
4.909.000
2.400.000
2.618.000
3.400.000
3.709.000
4.000.000
4.364.000
20.000.000
21.028.000
Severance pay to employees whose services are no longer needed
41125
41126
41127
41128
41129
THE PCINJA ADMINISTRATIVE DISTRICT
KOSOVO ADMINISTRATIVE DISTRICT
PEC ADMINISTRATIVE DISTRICT
PRIZREN ADMINISTRATIVE DISTRICT
KOSOVSKA MITROVICA ADMINISTRATIVE
DISTRICT
41130 KOSOVSKO POMORAVLJE
ADMINISTRATIVE DISTRICT
57 Subtotal
58 13300 MINISTRY OF TRADE AND SERVICES
13301 GOVERNMENT DIRECTORATE OF GOODS
RESERVES
58 Subtotal
59 11900 MINISTRY OF HEALTH
130
130
130
130
130
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
410 Trade and Services System regulation
Market control and supervision
Establishing a modern market of goods and services
Improving the institutional framework for the goods market
development
Strengthening entrepreneurship and competition in trade in RS
Improving consumer protection in the area of services in RS
Stimulating and supporting the presence of Serbian companies in the
international market
Improving competition in the services market
Improving product and service quality in RS
Implementation of Stabilization and Association Agreement
IPA 2009 Improving consumer protection in the area of goods in RS
Development and positioning of Serbia's national brand
Harmonization of regulations in the field of trade and services with the
EU legislation
Improving the development and strengthening the capacity of the
Consumer Protection Center MTU
Forming a Trade Development Center
IPA - 2010 Market supervision
490 Ensuring functional unity between strategic and stabilizing commodity
reserves
Bringing the warehousing capacities of SDCR to optimal level
760 Expenditures without differentiation by purposes
“Health System Regulation” program
“Health Institutions Control and Supervision” program
“Sanitary supervision” program
“Medicines and Drugs Supervision” program
“Conducting the functions of general interest in health system” program
“Stimulating the activities for massive voluntary blood donation”
program
Program “Health care for persons serving time in prison and taking the
security measures of mandatory psychological treatment, care and
health protection of persons with unknown place of residence”
Public health program in the function of Biocides Institute
Public health program in the function of Antirabbies Institute (protection
from the rabbies) “Luis Pasteur”, Novi Sad
Public health program in the function of Virology, Vaccine and Serum
Institute “Torlak”
Public health program in the function of the Serbian Work Medicine
Institute
Program “Improving health of special groups of population”, including
the project “Roma health care plan implementatoin”
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
5
Program “Improving health of population for illnesses of special social
and medical importance” including the “Projcet TBC by implementing
the DOT strategy” and project “Improving the national response to
HIV/AIDS”
Program “Participating in financing construction and equipping of health
institutions”
Program “Improving the transfusion and transplantation departments”,
including the projects: “Providing conditions for transplantation of
hematopoietic stem cells for children” and “Providing conditions for
transfusion and transplantation of organs for adults”
2012 Beneficiary’s
request (without
i d 6i )
11902 BIOMEDICINE ADMINISTRATION
59 Subtotal
60 13700 MINISTRY OF EDUCATION
13701 PRIMARY EDUCATION
13702
13703
13704
13705
13709
SECONDARY EDUCATION
STUDENT STANDARD
COLLEGE AND UNIVERSITY EDUCATION
STUDENT STANDARD
INSTITUTE FOR EDUCATION
IMPROVEMENT
13710 INSTITUTE FOR EDUCATION QUALITY
980 Expenditures without differentiation by purposes
910 Expenditures without differentiation by purposes
IPA - 2008
920 Expenditures without differentiation by purposes
960 Expenditures without differentiation by purposes
940 Expenditures without differentiation by purposes
960 Expenditures without differentiation by purposes
980 Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
980 Expenditures without differentiation by purposes
ASSESSMENT
7
4.000.000
4.364.000
1.721.140.000
1.162.409.000
52.000.000
56.731.000
Program “Health care system work quality improvement” comprising the
World Bank “DILS” project
Program “Support to Non-governmental Organizations” which includes
the projects: “Stimulating the activities of professional organizations,
councils and associations”; “Activities of the Serbian anti-cancer
association and Vojvodina anti-cancer association”; “Activities of clinical
treatment and curing of HIV infected and persons who developed AIDS”
and “Public powers entrusted to the Red Cross of Serbia”.
Program of “Providing compulsory health insurance to persons without
own income” - Health care for persons deemed insurees under Article
22, para. 1 of Law on Health Insurance.
IPA - 2010 Life care department development
760 Project “Biomedicine Administration Regulation”
in RSD
2012 - LIMIT
0
11.400.000
11.890.000
11.576.000.000
30.000.000
67.471.000
15.370.505.000
689.284.000
53.207.458.000
25.000.000
23.712.379.000
2.920.803.000
20.817.713.000
5.416.833.000
641.495.000
30.000.000
49.025.000
3.980.232.000
750.002.000
58.447.167.000
27.274.000
26.280.297.000
3.142.543.000
24.364.340.000
5.810.788.000
44.515.000
124.400.000
14.814.000
72.122.533
7.832.467
18.840.000
105.397.000
0
0
15.451.000
0
0
0
48.987.000
2008 IPA Project
Developing educational standards for the end of general high school
education for four subjects; Preparing a program and instruments of
final exam in primary schools; Conducting a survey on programs and
exams in the education system
Assessment of pilot programs in primary and secondary education
35.964.000
0
0
0
Developing educational standards for the end of general high school
education for four subjects; Preparing a program and instruments of
final exam in primary schools; Conducting a survey on programs and
exams in the education system
Assessment of pilot programs in primary and secondary education
15.000.000
0
3.000.000
0
Developing educational standards for the end of general high school
education for four subjects; Preparing a program and instruments of
final exam in primary schools; Conducting a survey on programs and
exams in the education system
Assessment of pilot programs in primary and secondary education
60 Subtotal
61 10400 MINISTRY OF PUBLIC ADMINISTRATION
110 Expenditures without differentiation by purposes
AND LOCAL SELF-GOVERNMENT
Severance pays for retirement
Central system for electronic processing and registry books warehousing
Assistance to local communities in undeveloped units of local
government
Project of establishing a Regional school for public administration
Professional development of registrars project
Instituting a Unique Polling Roll
Electronic exchange of data on citizens - Ministry of Public
Administration and Local Self-Government/Ministry of Internal Affairs
61 Subtotal
62 12100 MINISTRY OF RELIGION
840 Regulation of government’s cooperation with churches and religious
communities
0
107.138.981.000
0
118.979.223.000
220.500.000
110.000.000
131.845.000
120.008.000
80.000.000
56.075.000
100.000.000
100.000.000
12.000.000
60.000.000
40.000.000
13.092.000
10.430.000
36.290.000
10.000.000
632.500.000
0
467.740.000
45.192.000
39.285.000
Item
Code
Beneficiary
Functi
on
1
2
3
4
Purposes
5
Implementing government’s cooperation with churches and religious
communities
Religious education
Assistance to churches and religious communities
62 Subtotal
TOTAL
2012 Beneficiary’s
request (without
i d 6i )
230.000.000
185.000.000
275.000.000
735.192.000
959.981.724.243
in RSD
2012 - LIMIT
7
192.955.000
151.235.000
247.547.000
631.022.000
864.067.893.000
Appendix 4.
A SUMMARY OF REQUESTS BY BUDGET BENEFICIARIES AND IDENTIFIED LIMITS FOR 2013
- by purpose Item
Code
1
1
Beneficiary
2
3
20100 NATIONAL PARLIAMENT
20101 NATIONAL PARLIAMENT - PROFESSIONAL
Function
Purposes
4
5
110 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
DEPARTMENTS
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
811.553.000
7
828.737.000
970.646.000
1.069.243.000
1.782.199.000
131.500.000
20.000.000
31.833.000
1.897.980.000
153.045.000
21.715.000
36.259.000
183.333.000
367.389.000
89.360.779
36.928.000
211.019.000
413.195.000
76.336.000
42.357.000
41.826.000
87.588.000
6.500.000
47.581.000
99.844.000
5.429.000
1.308.000
1.308.000
44.802.000
44.943.000
415.650.000
34.615.000
181.358.000
38.466.000
34.944.000
33.136.000
21.803.000
24.471.000
21.740.000
25.211.000
35.883.220
16.354.000
241.278.000
241.278.000
36.471.820
39.600.000
50.000.000
56.785.000
50.100.000
54.397.000
10.300.000
10.300.000
21.010.000
22.369.000
67.614.000
24.410.000
110.133.000
0
27.629.000
116.602.000
66.000.000
24.091.000
180.320.000
16.286.000
26.157.000
200.910.000
11.700.000
6.800.000
0
0
0
20.000.000
0
1 Subtotal
2
10100 PRESIDENT OF THE REPUBLIC
110 Expenditures without differentiation by purposes
Costs relating to preparation and granting of awards
133 Expenditures without differentiation by purposes
10200
10201
10204
10205
110
110
110
110
10208
110 Expenditures without differentiation by purposes
Government officials development program
Staff records program - renewal of equipment and system
supplement
110 Expenditures without differentiation by purposes
2 Subtotal
3
GENERAL SECRETARIAT OF THE GOVERNMENT
MEDIA COOPERATION OFFICE
OFFICE OF THE GOVERNMENT’S PRESIDENT
OFFICE OF THE GOVERNMENT’S PRESIDENT - for
European Integrations
10206 HUMAN RESOURCE MANAGEMENT UNIT
10215
10216
10217
10218
10219
10220
OFFICE OF THE NATIONAL COUNCIL FOR
COOPERATION WITH THE INTERNATIONAL
TRIBUNAL FOR CRIMINAL PROSECUTION OF
PERSONS RESPONSIBLE FOR SERIOUS
VIOLATIONS OF INTERNATIONAL HUMANITARIAN
LAW COMMITTED ON THE TERRITORY OF FORMER
YUGOSLAVIA FROM 1991
OFFICE FOR SUSTAINABLE DEVELOPMENT OF
INSUFFICIENTLY DEVELOPED REGIONS
OFFICE OF THE FIRST DEPUTY PRIME MINISTER
OFFICE OF THE GOVERNMENT’S PRESIDENT - for
economic development
OFFICE OF THE GOVERNMENT’S PRESIDENT - for
social policy and social activities
CENTRAL REGISTRY OF CONTRIBUTION PAYERS
FOR SOCIAL INSURANCE - EMPLOYERS AND
INSUREES
SERBIA’S COORDINATION DEPARTMENT FOR THE
MUNICIPALITIES OF PRESEVO, BUJANOVAC AND
MEDVEDJA
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
The program for financing investment projects in the
municipalities of Presevo, Bujanovac and Medvedja
The program for financing the translation and printing of
books in the Serbian and Albanian language for the first year
of university studies in Presevo and Bujanovac
The program of scholarship for 300 high school students,
purchase of student bags and school kits for students and
provision of one-off cash benefits for persons with special
needs, single mothers, children without parental care
The program for financing organizations that undertake
multiethnic, sports, cultural, religious and other activities in
order to improve the living conditions of youth
10221 OFFICE OF THE NATIONAL COUNCIL FOR
The program of simultaneous interpreting equipment
purchase
110 Expenditures without differentiation by purposes
DECENTRALIZATION OF THE REPUBLIC OF SERBIA
10222 OFFICE OF THE NATIONAL SECURITY COUNCIL
42200 EUROPEAN INTEGRATION OFFICE
110
110
42400 ANTI-CORRUPTION COUNCIL
61029 GOVERNMENT’S AIR DEPARTMENT
360
450
Preparing the Strategy for Decentralization of the Republic
of Serbia
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
The services of translating acquis communautaire into the
Serbian language
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
The lacking funds for the salaries of the Unit Director and
one co-pilot who start working in 2010
Airplane insurance
General revision of motor no. 1
Finishing the works on the hangar
Purchase of new airplane Falcon 900
20.000.000
3 Subtotal
4
4 Subtotal
5
30100 CONSTITUTIONAL COURT
330 Expenditures without differentiation by purposes
2.160.564.819
161.680.000
1.882.302.000
149.860.000
30216 HIGH JUDICIAL COUNCIL
330 Expenditures without differentiation by purposes
161.680.000
133.886.000
149.860.000
152.590.000
Item
Code
Beneficiary
Function
Purposes
1
2
3
4
5
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
5 Subtotal
6
6 Subtotal
133.886.000
58.601.000
152.590.000
57.270.000
58.601.000
2.398.355.000
300.000.000
57.270.000
3.533.542.000
100.000.000
83.495.000
205.501.000
218.592.800
668.863.000
70.008.000
240.170.000
119.796.000
1.373.801.000
4.290.182.000
527.329.000
419.384.000
101.762.000
224.296.000
187.535.000
788.557.000
81.660.000
264.990.000
129.255.000
1.277.215.000
4.113.219.000
603.277.000
457.299.000
819.008.000
202.954.000
1.412.851.000
854.222.000
239.272.000
1.665.684.000
330 Expenditures without differentiation by purposes
185.249.000
177.495.000
164.094.000
209.257.000
42700 OMBUDSMAN
133 Expenditures without differentiation by purposes
13.713.033.800
155.601.000
14.995.136.000
140.349.000
20102 STATE AUDIT INSTITUTION
110 Expenditures without differentiation by purposes
155.601.000
388.450.000
140.349.000
258.025.000
61030 MINISTRY OF FOREIGN AFFAIRS
110 Expenditures without differentiation by purposes
Acquisition equipment for 53 DCO for biometric passports
388.450.000
1.624.781.000
258.025.000
1.752.629.000
30215 STATE PROSECUTORS’ COUNCIL
330 Expenditures without differentiation by purposes
30200 JUDICIAL BODIES
30203 GOVERNMENT’S PUBLIC PROSECUTOR’S OFFICE
330 Expenditures without differentiation by purposes
Introducing a modern information system
330 Expenditures without differentiation by purposes
30204
30210
30211
30214
30221
30222
30225
30226
30227
30228
30229
GOVERNMENT’S PUBLIC ATTORNEY’S OFFICE
ADMINISTRATIVE COURT
COURTS OF APPEAL
WAR CRIMES PROSECUTOR’S OFFICE
SUPREME COURT OF CASSATION
COMPANY COURT OF APPEALS
HIGHER COURTS
COURTS OF GENERAL JURISDICTION
TRADE COURTS
HIGHER PUBLIC PROSECUTOR’S OFFICES
PUBLIC PROSECUTOR’S OFFICES OF GENERAL
JURISDICTION
30232 HIGH MAGISTRATES COURT
30233 MAGISTRATE COURTS
30235 PROSECUTOR’S OFFICE FOR ORGANIZED CRIME
330
330
330
330
330
330
330
330
330
330
330
30236 PUBLIC PROSECUTOR’S OFFICES OF APPEAL
8
8 Subtotal
9
9 Subtotal
7
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
330 Expenditures without differentiation by purposes
7 Subtotal
10
61031 DIPLOMATIC AND CONSULAR OFFICES
10
Subtotal
11
61040 MINISTRY OF DEFENSE
Purchase of administrative equipment
Necessary construction works
Software and equipment (protected computers) for finances
in MFA and DCO - integrated system
113 Expenditures without differentiation by purposes
Health insurance of employees working abroad
Construction works on big buildings in Brussels, Paris,
Washington
210 Expenditures without differentiation by purposes
Professionalization of Serbian army
Purchase of equipment
Arranging the archives and transferring the SI institute
250
61041 DEFENSE INSPECTORATE
61042 MILITARY SECURITY AGENCY
61043 MILITARY INFORMATION AGENCY
11
Subtotal
12
12
Subtotal
13
13
Subtotal
14
210
210
210
Financing pensions of military insurees
Expenditures without differentiation by purposes
Participating in multinational operations
Long term residential loans for professional military
personnel of the Serbian Army
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Infrastructural works on the facilities of the Military and
Information Agency
0
0
0
4.924.927.470
339.707.500
0
3.720.432.000
368.842.000
0
6.889.415.970
68.732.695.000
4.674.562.000
31.167.032.000
5.841.903.000
50.210.558.000
0
0
60.020.000
22.910.657.000
201.371.000
281.623.000
0
26.100.000.000
271.541.000
0
150.000.000
12.247.000
118.730.000
201.500.000
0
13.163.000
102.530.000
156.050.000
6.000.000
0
10600 MINISTRY OF INTERNAL AFFAIRS
310 Expenditures without differentiation by purposes
128.516.437.000
46.105.101.000
76.853.842.000
49.301.226.000
41300 SECURITY INFORMATION AGENCY
360 Expenditures without differentiation by purposes
46.105.101.000
3.573.386.000
49.301.226.000
3.958.795.000
10500 MINISTRY OF FINANCE
90 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
IPA -2008 Decentralized Implementation System of the EU
funds
IPA - second component
160 Expenditures without differentiation by purposes
180 Expenditures without differentiation by purposes
110 Expenditures without differentiation by purposes
Construction of border crossings
Construction of border crossings
Construction of border crossings
3.573.386.000
210.201.000.000
3.593.044.000
3.958.795.000
242.100.000.000
2.670.963.000
10502 CUSTOMS ADMINISTRATION
26.678.927
2.481.536.302
56.365.571.000
3.231.214.000
389.400.000
0
30.299.000
5.072.788.000
56.365.571.000
3.330.927.000
0
0
0
Item
Code
Beneficiary
Function
1
2
3
4
Purposes
5
Construction of border crossings
Construction of customs houses and customs facilities
2013 Beneficiary’s
request (without
d 6
)
430.700.000
in RSD
2013 - LIMIT
7
0
0
Construction of customs houses and customs facilities
0
Construction of customs houses and customs facilities
10504 GAMES OF CHANCE ADMINISTRATION
10507 TOBACCO ADMINISTRATION
10508 ANTI-LAUNDERING ADMINISTRATION
133
10509 FOREIGN CURRENCY INSPECTORATE
10510 FREE TRADE ZONES ADMINISTRATION
10511 PUBLIC DEBT ADMINISTRATION
133
410
110
170
110
40200 TAX ADMINISTRATION
14
Subtotal
15
15
Subtotal
16
Providing for normal functioning and continuous technical
and technological modernization of CSIS
CSIS overall protection
Financial support from the EU within the Instrument for PreAccession Assistance (IPA) - European funds and national cofinancing
110 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
Purchase of equipment for public security for new business
premises
Electricity use services for the existing and new business
premises
Purchase of a photocopying maching for the new business
premises
Capital maintenance of buildings and facilities and project
planning, capital mainenance of communication and
electricity lines
Purchase of 10 thermal-accumulation stoves for the new
business premises
Purchase of computer equipment
Purchase of necessary office furniture for complete
furnishing of the assistant director office in the new business
premises
Mandatory fee cost
Current maintenance of the two new photocopying
machines (mandatory regular service within the guarantee
time, after a certain number of copies and further on)
10300 MINISTRY OF JUSTICE
10301 CRIMINAL SANCTIONS ENFORCEMENT AGENCY
Office materials
Expenditures without differentiation by purposes
IPA - 2010
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Software
10302 DIRECTORATE FOR MANAGING SEIZED PROPERTY
360 Expenditures without differentiation by purposes
340 Organizing, enforcing and supervising execution of criminal
penalties
Significant increase in the scope of activities - increasing the
number of arrested persons by 2013
360 Expenditures without differentiation by purposes
10303 JUDICIAL ACADEMY
360 Expenditures without differentiation by purposes
10700 MINISTRY OF AGRICULTURE, FORESTRY AND
420 Expenditures without differentiation by purposes
WATER MANAGEMENT
10701 GOVERNMENT DIRECTORATE OF WATERS
10702 AGRICULTURAL LAND ADMINISTRATION
10703 GENERAL INSPECTORATE OF AGRICULTURE,
630 Expenditures without differentiation by purposes
Dams and accumulations, Program for construction,
reconstruction and improvement of water management
facilities
Water protection, Program for construction, reconstruction
and improvement of water management facilities
International cooperation, Program for construction,
reconstruction and improvement of water management
facilities
420 Expenditures without differentiation by purposes
420 Expenditures without differentiation by purposes
FORESTRY AND WATER MANAGEMENT
10704 DIRECTORATE OF REFERENCE NATIONAL
10705
12001
41900
42000
LABORATORIES
AGRARIAN PAYMENTS ADMINISTRATION
FOREST ADMINISTRATION
VETERINARY ADMINISTRATION
PLANT PROTECTION ADMINISTRATION
420 Expenditures without differentiation by purposes
420
420
760
420
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
IPA Project
Analysis of breeds in laboratories
Workshops, printing services, informing
320.000.000
0
715.696.088
35.400.000
0
0
10.000.000
35.273.000
24.984.000
11.357.000
37.319.000
30.816.000
0
730.000
793.000
0
0
0
0
1.000
200.000
200.000
86.452.000
0
0
105.139.000
20.300.000
24.788.000
34.900.000.000
5.968.761.000
47.200.000
0
0
58.905.000
0
112.352.000
12.821.000
28.882.000
44.000.000.000
6.872.583.000
46.610.000
319.014.268.317
395.065.000
360.782.986.000
426.590.000
5.555.892.000
6.310.319.000
993.565.000
148.800.000
58.162.000
79.331.100
63.030.000
37.067.000
7.082.015.100
6.985.806.000
3.110.800.000
12.629.000
2.503.431.000
3.006.000
100.000.000
100.000.000
73.571.000
73.571.000
50.000.000
170.320.000
50.000.000
38.746.000
91.600.000
89.038.000
44.000.000
20.596.145.000
191.470.000
1.834.200.000
37.600.000
33.662.000
15.483.629.000
166.753.000
1.486.928.000
36.278.000
0
2.172.000
0
7.000.000
500.000
Item
Code
Beneficiary
Function
Purposes
1
2
3
4
5
16
Subtotal
17
13000 MINISTRY OF ECONOMY AND REGIONAL
410 Expenditures without differentiation by purposes
DEVELOPMENT
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
26.319.835.000
20.067.214.000
1.052.255.000
1.076.552.000
600.000.000
651.458.000
2.500.000.000
2.500.000.000
3.920.000.000
4.256.191.000
1.000.000.000
1.085.763.000
600.000.000
651.458.000
1.400.000.000
1.400.000.000
71.875.000
0
64.302.000
880.000.000
6.000.000.000
700.000.000
3.655.000.000
4.000.000.000
4.542.832.000
0
FIAT - founding stake and special importance investments
Program for distributing and using the funds of credit
support to companies via the Development Fund
The program of measures for alleviating the negative effects
of global economic crisis in the Republic of Serbia
Start-up loans for beginners via the Development Fund
Earmarked loans for stimulating production and exports
Program for stimulating new direct investments and opening
of new jobs - greenfield
Export-promotion program by means of loans and export
insurance, increase in capital of AOFI
412 Expenditures without differentiation by purposes
Reimbursement of salaries and improvement of work
conditions for the disabled persons
NES transfer for active employment measures
Resolving the work status of redundant employees (cash
compensation, special cash compensation and severance
pays)
Payment of late salaries to the Zastava Group
Project “Support to the national efforts for promoting
employment of youth and managing migrations - financing
the programs for the Youth Employment Fund”.
0
Cofinancing the Operative program - 4. IPA component Human Resource Development
473 Expenditures without differentiation by purposes
Construction of accommodation capacities in the location of
Jabucko ravniste
PE Skijalista Srbije
PE Stara planina
Tourist Organization of Serbia
Loans for stimulating the quality of hospitality supply
Tourism development projects
National tourism development corporation
Park Palic d.o.o.
474 Expenditures without differentiation by purposes
Program for stimulating balanced regional development crediting undeveloped municipalities via the Development
Fund (for devastated areas, processing industry and for
stimulating entrepreneurship; loans for investment purposes
- building facilities, extending the existing facilities, purchase
of equipment)
Cluster development program
Program for stimulating companies to invest into innovation
Program of support for the new initiatives for stimulating
entrepreneurship
Municipality assistance program through cofinancing the
mandatory part of participation for priority projects financed
from grants
Competition development support program: fast growing
SME support project, business services development support
project
Program for co-financing local initiatives for SME
development (including business incubators)
SME support program for introducing e-business
Entrepreneurship development support program for
particularly sensitive target groups
Program of support for SME’s facing serious financial
problems that can jeopardize their survival (second chance)
Program for support to SME’s for implementing
international QMS standard and product certification
EQUITY & VENTURE CAPITAL FUND development support
program
Program for the support to old art crafts and hand made
manufacturing
IPA - 2010 South and South-West Serbia support program
490 Expenditures without differentiation by purposes
150.000.000
221.140.000
0
238.452.000
500.000.000
1.782.233
100.000.000
350.000.000
400.000.000
1.080.000.000
94.400.000
40.000.000
792.707.000
542.882.000
1.782.000
100.000.000
220.000.000
434.305.000
555.146.000
10.858.000
43.431.000
409.795.000
2.300.000.000
170.000.000
1.954.373.000
28.000.000
100.000.000
25.000.000
24.000.000
17.000.000
100.000.000
0
100.000.000
0
45.000.000
53.000.000
0
0
5.500.000
0
15.500.000
15.500.000
55.000.000
0
120.000.000
0
15.000.000
15.000.000
429.168.000
0
423.392.000
Item
Code
Beneficiary
Function
1
2
3
4
Purposes
5
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
Accommodation costs for economic advisors from DCO
13001 DIRECTORATE OF MEASURES AND PRECIOUS
130 Expenditures without differentiation by purposes
METALS
17
Subtotal
18
13002 STANDARDIZATION INSTITUTE
130 Expenditures without differentiation by purposes
10900 MINISTRY OF MINING AND ENERGY
430 Expenditures without differentiation by purposes
Preparation of new Energy Development Strategy until 2025
108.000.000
122.656.000
129.175.000
134.700.000
160.752.000
92.392.000
29.658.202.233
188.300.000
25.994.272.000
204.802.000
0
City construction land fee for the business premises of the
Ministry
Energy Development Strategy until 2025 implementation
program
Subsidies to RS heat plants (KfW) phase 4.
Preparing analyses and bases for the six by-laws and
upgrade of the information system
Monitoring and enforcing the energy and climate package of
the EU and energy efficiency within the RS Action Plan
0
300.000.000
0
1.400.000
Preparing the Program of Urgent Measures for reducing the
impact of high oil and gas prices
Law confirming the Statute of the International Renewable
Energy Agency (IRENA) for RS membership in the Agency
Program for stimulating thermal energy generation from
renewable sources
Forming the certification system for bio-fuel manufacturers
0
0
1.520.000
0
500.000
543.000
15.000.000
0
5.000.000
5.429.000
3.300.000.000
0
2.130.537.000
Forming new institutions from the area of energy: Institution
for strategic planning in energy sector, Energy efficiency
fund, and Mandatory oil reserves institution
440 Expenditures without differentiation by purposes
RS share in the Government of Japan’s grant in the Mining
Waste Management Project - flotation tailings pond in the
Bor region, grant
Mining development support and removing detrimental
consequences created by mineral ore exploitation program
18
Subtotal
19
19
Subtotal
20
13100 MINISTRY OF INFRASTRUCTURE
450 Expenditures without differentiation by purposes
13200 MINISTRY OF TELECOMMUNICATIONS AND
460 Expenditures without differentiation by purposes
INFORMATION SOCIETY
SEELight Project together with the Corridor X project is a
part of the HIPERB Program (Hellenic Plan for the Economic
Reconstruction of the Balkans)
Academic scientific research and education network of
Serbia
Digitalization
IPA - 2010 Support to transferring to digital broadcasting in
RS
IPA - 2010 Government Administration Reform
20
Subtotal
21
0
30.000.000
32.573.000
3.840.200.000
25.037.286.900
2.375.404.000
20.270.829.000
25.037.286.900
20.270.829.000
260.700.000
215.707.000
0
100.000.000
0
0
360.700.000
13400 MINISTRY OF LABOR AND SOCIAL POLICY
10 Expenditures without differentiation by purposes
Veteran and Disability Protection Rights
Delivery services from Agreement with Postanska stedionica
for paying the Veteran and Disability Protection Rights
Celebrating important dates from the Serbian history festivals
Reconstruction and improvement of monuments in the
country and abroad
Monument and cript at Zebrnjak
Monument to the Unknown hero on the Avala
Monument of gratitude to France
Monumental complex Sremski front
Serbian military graveyard in Thessaloniki - Zejtilnik
Maintenance of monuments in the country and abroad
Services from the software maintenance contract in the area
of veteran and disability protection and payment of doctor
commissions
Financing program and project activities of veteran and
disability associations
108.576.000
0
14.736.600.000
324.283.000
0
15.090.040.000
41.200.000
42.284.000
30.300.000
32.899.000
26.277.730
25.900.000
0
0
0
0
0
15.000.000
6.564.000
7.127.000
5.748.000
4.612.000
49.211.000
53.431.000
Item
Code
Beneficiary
Function
1
2
3
4
Purposes
5
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
Improving the position of the veteran population continuation of PTSP projects and forming Veteran Centers
Forced collection
40 Budget compensations for maternity leave
Budget compensations for children and families - child
allowance
Budget compensations for children and families - parent
allowance
Budget compensations for families and children - Mothers
refugees, Children in pre-school institutions with mental
problems and children without parental care, and one-off
assistance
Fixed costs - commission of PS for child allowance payments
5.000.000
100.000.000
23.383.080.000
0
108.576.000
20.620.000.000
11.566.800.000
10.200.000.000
5.862.780.000
5.170.000.000
12.700.000
12.700.000
80.599.890
71.400.000
19.500.000
19.500.000
5.000.000
3.849.338.000
5.000.000
0
4.451.655.000
17.990.800.000
65.000.000
19.940.157.000
65.000.000
10.700.000
12.152.000
3.466.000.000
0
300.000.000
59.000.000
116.622.000
28.191.000.000
0
0
125.181.000
31.751.260.000
75.000.000
1.900.000
636.965.000
368.600.000
22.200.000
20.556.000
2.353.000
717.564.000
368.600.000
22.200.000
5.500.000
4.750.000
13.359.000
14.505.000
7.157.000
0
7.771.000
4.674.000
30.365.000
3.257.000
32.584.000
111.160.540.620
109.003.014.000
10.422.879.000
9.724.794.000
3.448.096.000
0
1.991.320.000
0
1.555.719.000
8.235.186.000
0
0
25.653.200.000
9.724.794.000
522.838.000
267.000.000
311.837.000
153.000.000
40.000.000
69.200.000
142.000.000
4.660.000
20.000.000
10.000.000
593.344.000
289.899.000
288.962.000
143.000.000
0
0
138.000.000
5.292.000
21.715.000
10.858.000
0
0
Contracted services - printing forms for child and parent
allowance, printing Demographic Survey and work of the
ombudsman and maintenance of application software
Grants from the budget to non-governmental organizations
70 Expenditures without differentiation by purposes
Wages of employees in social protection institutions
Rights of natural entities in the area of social protection
Investments into social protection institutions
Transfers by Social protection improvement program passed
by the minister
Monitoring the level of rights to the material assistance and
development of social protection services locally
13401 SECURITY AND SAFETY AT WORK
Forming regional centers for family accommodation and
employing new workers in social work centers
Founding Social Protection Chamber
90 Expenditures without differentiation by purposes
Transfer of funds to the RF PIO from RS budget
Reimbursement of the paid VAT on import of motor vehicles
for the disabled persons, war veterans with disabilities and
the civilians disabled during the war
Age pension for Jovanka Broz
410 Expenditures without differentiation by purposes
Financing the work of the Solidarity Fund
Financing the work of the Social Economic Council
IPA - 2008 Support to Serbia’s participation in the
Community programs
410 Expenditures without differentiation by purposes
ADMINISTRATION
50010 LABOR INSPECTORATE
Implementing the activities contained in the Action Plan for
implementing the Strategy of Security and Safety at Work in
RS for a period 2009-2012.
410 Expenditures without differentiation by purposes
Activities regarding implementation of the Action Plan for
conducting the national strategy for improving the position
of women
410 Expenditures without differentiation by purposes
13500 MINISTRY OF SCIENCE AND TECHNOLOGICAL
140 Expenditures without differentiation by purposes
13402 GENDER EQUALITY ADMINISTRATION
21
Subtotal
22
DEVELOPMENT
The program of cofinancing integral and interdisciplinary
researches
Establishing a national importance institute in accordance
with the Strategy and the Law
Doctoral and academic studies project cofinancing program
Program for founding the centers of excellence
22
Subtotal
23
14000 MINISTRY OF ENVIRONMENT AND SPATIAL
560 Expenditures without differentiation by purposes
PLANNING
Projects from the area of geological research
Projects from the area of environment
Financing the Nature Protection Institute
Financing the Ionizing Rays Protection Agency
Financing the Chemicals Agency
Cofinancing protected natural goods
Contributions to international organizations
Projects from the area of environment - HBO
Indemnization for protected natural species
JDS project 3 - Third joint Danube research
Strategy implementation monitoring plan
Item
Code
Beneficiary
Function
1
2
3
4
Purposes
5
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
National Environmental protection program implementation
620 Expenditures without differentiation by purposes
Financing the activities of the Spatial Planning Agency
Financing the reconstruction of the Kolubara region hit by
earthquake
Preparation of spatial and urban plans
The “Clean Serbia” project - building local infrastructure,
removing unauthorized waste depots and other pollutants in
order to protect the environment
Financing urgent interventions and assisting people in case
of the elements
Financing the building of the Drina bridge on the location
Bacevci-Fakovici with access roads and new border crossing
100.000.000
85.535.270
54.288.000
88.107.000
200.000.000
200.000.000
300.000.000
222.445.000
178.000.000
222.445.000
110.000.000
100.000.000
60.000.000
0
250.000.000
0
Project “Border Crossing Kotroman Reconstruction”, which
is in the protected natural good Mokra Gora
Financing the building of a residential building for the
returnees to Kosovo and Metohija in Kosovska Mitrovica and
Zubin Potok, and building the church facilities in the Zica
Monastery
Financing the building of database and information system
for licenses, investment projects, urban and spatial planning
Financing the founding and work of the Social Counselling
Agency
Subsidizing interest on loans for construction of 5,000
residential units
Financing implementation of the Law on Social Living
Conducting a Program of Training for Managers of
residential buildings and conducting a pilot project for about
50 residential buildings in around 20 towns in Serbia
Construction of 500 publicly owned residential units
IPA - 2010 South and South-West Serbia support program
23
Subtotal
24
14001 ENVIRONMENTAL PROTECTION AGENCY
50026 ENVIRONMENTAL PROTECTION FUND
560 Expenditures without differentiation by purposes
560 Expenditures without differentiation by purposes
13800 MINISTRY OF YOUTH AND SPORTS
810 Functioning of the Ministry
Conducting programs and projects in the area of youth
policy
Conducting programs and projects in the area of sports
13801 SERBIAN ANTI-DOPING AGENCY
Conducting programs and projects in the area of
investments
810 Functioning of the Serbian Antidoping Agency
Introducing regular doping controls in national competitions
The project of labeling pharmaceutical products based on
the Law on Sports (doping)
Implementation of the Adams base and athlete training
0
0
2.150.000
2.150.000
20.000.000
20.000.000
1.000.000.000
0
1.000.000.000
1.000.000.000
0
0
105.818.877
23.562.000
0
49.595.000
27.719.000
5.020.046.147
124.853.000
3.433.374.000
126.772.000
194.300.000
212.063.000
2.417.633.697
2.090.722.000
566.870.000
14.398.000
450.000.000
16.161.000
16.000.000
17.372.000
650.000
706.000
1.020.000
1.107.000
1.200.000
0
1.000.000
82.841.000
34.416.000
0
95.511.000
7.600.000
0
20.783.000
5.740.000
2.048.000
650.000.000
4.000.000
0
0
639.835.000
0
8.510.000
8.510.000
17.000.000
17.000.000
4.159.262.697
140.002.000
100.000.000
2.000.000
3.687.359.000
113.059.000
59.008.000
527.000
Cooperation with the Ministry of Internal Affairs and
Customs Administration for preventing crimes and offences,
under the Law on Doping Prevention in Sports
13802 PHYSICAL EDUCATION INSTITUTES
13803 YOUNG TALENTS FUND
50025 SPORTS FINANCING BUDGET FUND
Project for support to prevention and education in
rehabilitation
810 Functioning of the NSO
Maintenance of the Sports Hall
Improvement of the trim track
Revitalization of the center for motor and medical
researches
Material expenses
Tests in camps
980 Student scholarships
European integration scholarships - IPA project
810 Construction of sports capacities for the disabled persons
Reconstruction of sports capacities to adjust them for use of
the disabled persons
24
Subtotal
25
11800 MINISTRY OF CULTURE
820 Expenditures without differentiation by purposes
Regular activities of the governmental bodies
Intengible assets
Item
Code
Beneficiary
Function
1
2
3
4
Purposes
5
Protection, Program of distributing and using the funds
adopted by the Serbian Government
Cinematography, Program of distributing and using the funds
adopted by the Serbian Government
Scene and music art, Program of distributing and using the
funds adopted by the Serbian Government
Visual art, Program of distributing and using the funds
adopted by the Serbian Government
Literature, Program of distributing and using the funds
adopted by the Serbian Government
Programs in Kosovo and Metohija, people’s, amature and
national minorities’ creations
International cultural cooperation, Program of distributing
and using the funds adopted by the Serbian Government
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
330.000.000
141.149.000
400.000.000
263.623.000
165.000.000
79.261.000
50.000.000
32.318.000
300.000.000
181.268.000
70.000.000
43.431.000
285.000.000
150.402.000
135.000.000
60.359.000
180.000.000
200.000.000
260.000.000
117.805.000
200.000.000
286.198.000
505.000.000
70.000.000
79.998.000
2.600.000.000
242.774.000
76.003.000
86.859.000
1.937.192.000
1.160.000.000
827.395.000
500.000.000
49.000.000
147.000.000
45.495.000
7.581.000.000
85.568.000
5.091.126.000
95.475.000
120.000.000
130.292.000
3.500.000
3.800.000
17.000.000
18.458.000
700.000
760.000
9.000.000
9.772.000
235.768.000
439.901.000
258.557.000
369.739.000
2.898.000.000
35.719.000
88.055.000
720.350.000
3.311.461.000
40.566.000
100.005.000
350.000.000
40.000.000
63.000.000
25.000.000
5.000.000
45.428.000
71.550.000
28.393.000
5.679.000
208.131.000
0
171.000.000
0
100.000.000
0
100.000.000
0
100.000.000
0
147.867.000
0
28.500.000
0
Supreme artistic achievements, Program of distributing and
using the funds adopted by the Serbian Government
11801 CULTURE INSTITUTIONS
25
Subtotal
26
12300 MINISTRY OF THE DIASPORA
Media competitions, Program of distributing and using the
funds adopted by the Serbian Government
Subsidies to PE’s for informing
National awards
Transfers to the second level of power for protection of
monuments
Restoration of the Chilandar
Grants to cultural associations
820 Expenditures without differentiation by purposes
Programs of culture institutions in accordance with the
Culture Law - regular financing
Investments into the preparation of projects for
reconstruction of institutions, renovation of installed
equipment and purchase of new, purchase of art works,
museum archives, etc.
Matica srpska, court penalties
410 Expenditures without differentiation by purposes
Lease of satellite services for broadcasting the program of
Public Service RTS for Europe, North America and Australia
for a period of 2011 to 2013
Improving the position and protection of rights and interests
of the Diaspora members and Serbs in the region
Improving cooperation/work of organizations and
associations in the Diaspora and organizations and
associations of organizations of Serbs in the region
Changed and supplemented release of a DVD “Investment
opportunities in the municipalities and cities of Serbia” and
supplemented issue of the brochure “Why invest into
Serbia”
Preserving, using and cherishing the Serbian language and
the Cyrillic script
26
Subtotal
27
13900 MINISTRY FOR KOSOVO AND METOHIJA
110 Expenditures without differentiation by purposes
Salaries to local governments in Kosovo and Metohija
Harvest in Kosovo and Metohija
Firewood in Kosovo and Metohija
Investment building for IRL
Equipping houses of the returnees in Kosovo and Metohija
Material costs for schools in Kosovo and Metohija
Reconstruction of schools in Kosovo and Metohija
Improving health care in Kosovo and Metohija
Reconstruction of cultural goods in Kosovo and Metohija
Funds for the returnees in Kosovo and Metohija
Participation for the IPA program
Restructuring and ownership transformation of legal entities
from the Serbian regions in Kosovo and Metohija
Agriculture development in the Serbian regions in Kosovo
and Metohija
Overcoming the problems of electricity supply for the
Serbian regions in Kosovo and Metohija
Reconstruction of the Serbian monasteries in Kosovo and
Metohija
Improving the education system in the Serbian regions in
Kosovo and Metohija
Item
Code
Beneficiary
Function
1
2
3
4
Purposes
5
Preservation of the Serbian cultural heritage in Kosovo and
Metohija
Construction of the nursery school Djurdjevak in Brnjica in
Kosovo and Metohija
Public company for development and improvement of
information by means of electronic media in the Serbian
language in AP Kosovo and Metohija
27
Subtotal
28
28
Subtotal
29
14200 MINISTRY OF HUMAN AND MINORITY RIGHTS
50029 NATIONAL MINORITIES BUDGET FUND
110 Expenditures without differentiation by purposes
160 Expenditures without differentiation by purposes
160 Expenditures without differentiation by purposes
14100 MINISTRY FOR THE NATIONAL INVESTMENT PLAN
410 Expenditures without differentiation by purposes
Corridor 10
Belgrade-Southern Adriatic
Construction of modern Serbian roads to major cities
Improvement of local communal infrastructure
Support to infrastructural development in the most
underdeveloped municipalities
Infrastructure development in big cities - the Zemun-Borca
bridge
Development of economic infrastructure
Development of infrastructure for improving the standard of
people (education, health, culture)
29
Subtotal
30
30
Subtotal
31
40100 STATE LEGISLATION SECRETARIAT
110 Expenditures without differentiation by purposes
40300 STATE DEVELOPMENT AGENCY
140 Expenditures without differentiation by purposes
National Development Plan
Development of a macroeconomic model of economic
growth
Forming the research and development observatory for
SME’s.
31
Subtotal
32
40400 STATE STATISTICS AGENCY
130 Expenditures without differentiation by purposes
Population, household and apartments census, 2011
Agriculture census 2011
Debt for construction land fee
32
Subtotal
33
40500 STATE ADMINISTRATION FOR
410 Expenditures without differentiation by purposes
HYDROMETEOROLOGY
Contributions - membership fees to international
organizations
2013 Beneficiary’s
request (without
d 6
)
42.700.000
in RSD
2013 - LIMIT
7
0
0
156.000.000
156.000.000
5.198.223.000
130.816.000
384.400.000
10.000.000
4.649.821.000
144.302.000
308.791.000
2.172.000
525.216.000
455.265.000
142.225.000
8.500.000.000
15.000.000.000
700.000.000
156.970.000
0
0
5.000.000.000
0
1.500.000.000
1.500.000.000
3.000.000.000
800.000.000
3.000.000.000
500.000.000
2.500.000.000
500.000.000
32.142.225.000
77.541.000
10.656.970.000
90.683.000
77.541.000
43.425.000
90.683.000
49.379.000
0
0
0
43.425.000
584.160.436
42.445.668
35.049.532
49.379.000
681.794.000
42.446.000
35.050.000
0
661.655.636
759.290.000
1.185.193.000
1.184.013.000
44.408.000
50.435.000
33
Subtotal
34
40600 STATE ADMINISTRATION OF GEODESY
410 Expenditures without differentiation by purposes
Preparing the national base of geospatial data of RS
1.229.601.000
1.444.056.000
300.000.000
1.234.448.000
1.501.027.000
0
34
Subtotal
35
40800 STATE ADMINISTRATION OF SEISMOLOGY
410 Expenditures without differentiation by purposes
Seismology station network maintenance program
1.744.056.000
25.784.000
600.000
1.501.027.000
28.946.000
600.000
35
Subtotal
36
40700 DIRECTORATE OF STATE PROPERTY
130 Expenditures without differentiation by purposes
BC Horgos
Managing immovable property owned by the state (business
premises, apartments, garages) until their distribution
26.384.000
115.278.000
38.750.000
29.546.000
128.844.000
42.073.000
7.300.000
7.926.000
18.628.000
18.132.000
0
2.000.000
1.300.000
2.000.000
1.411.000
780.000
326.000
5.450.000
0
Disposing of immovables owned by the state (acquisition,
alienation, exchange, lease, use, etc.)
Managing and disposing of state-owned equipment
Information system implementation and development
Health care and insurance of employees
Master plan for disposing of the immovables of RS Army
Sales and Purchase of apartments according to the
Regulation
Reconstruction of the building in Belgrade - 15 Uzicka St.
0
Reconstruction of the building in Belgrade - 28 Uzicka St.
0
36
Subtotal
189.486.000
200.712.000
Item
Code
1
37
Beneficiary
2
3
11601 STATE ADMINISTRATION OF INFORMATICS AND
Function
Purposes
4
5
140 Expenditures without differentiation by purposes
INTERNET
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
22.582.000
23.741.000
5.000.000
1.000.000
5.429.000
1.000.000
Development of e-government in RS for a period 2011-2013
Replacement and upgrading of existing equipment
37
Subtotal
39
39
Subtotal
40
40
Subtotal
41
10202 DEMINING CENTER
250 Expenditures without differentiation by purposes
28.582.000
11.872.000
30.170.000
13.813.000
64040 INTELECTUAL PROPERTY ADMINISTRATION
130 Expenditures without differentiation by purposes
11.872.000
109.409.000
13.813.000
119.051.000
109.409.000
119.051.000
12401 DIRECTORATE OF INTERNAL NAVIGABLE ROUTES
450 Expenditures without differentiation by purposes
165.984.000
191.372.000
3.031.000
3.031.000
7.746.000
28.000.000
3.800.000
1.000.000
0
0
4.126.000
0
209.561.000
60.840.000
198.529.000
71.838.000
60.840.000
21.381.000
71.838.000
24.683.000
900.000
977.000
– PLOVPUT
Purchase of equipment for marking the navigable route
Purchase of equipment for marking the navigable route
Implementation of RIS on the Danube
Equipment insurance
Health care of employees
41
Subtotal
42
42
Subtotal
43
43
Subtotal
44
44
Subtotal
45
45
Subtotal
46
12408 GEOMAGNETIC ADMINISTRATION
410 Expenditures without differentiation by purposes
50011 SOCIAL INSURANCE ADMINISTRATION
410 Expenditures without differentiation by purposes
Membership in the International Social Security Association
(ISSA)
42300 SERBIAN ACADEMY OF SCIENCE AND ART
140 Expenditures without differentiation by purposes
22.281.000
343.441.000
25.660.000
275.163.000
41200 PUBLIC PROCUREMENT ADMINISTRATION
410 Expenditures without differentiation by purposes
343.441.000
61.549.000
275.163.000
72.696.000
61.549.000
72.696.000
41600
360 Expenditures without differentiation by purposes
48.000
52.000
48.000
650.000
52.000
749.000
650.000
18.730.000
749.000
16.061.000
0
COMMISSION FOR EXAMINING RESPONSIBILITY
FOR HUMAN RIGHTS VIOLATIONS
46
Subtotal
47
47
Subtotal
48
48
Subtotal
49
49
Subtotal
50
50
Subtotal
51
10902 MINING AGENCY
440 Expenditures without differentiation by purposes
10901 ENERGY EFFICIENCY AGENCY
430 Expenditures without differentiation by purposes
Improving energy efficiency in the industry
Increasing awareness of the importance of energy efficiency
and renewable energy sources
Identifying wind energy potentials in Serbia
2.000.000
0
0
70 Expenditures without differentiation by purposes
Integration of refugees
Commission on Missing Persons
20.730.000
1.069.586.000
191.242.000
8.172.000
16.061.000
1.177.854.000
195.466.000
1.520.000
43200 ANTI-CORRUPTION AGENCY
360 Expenditures without differentiation by purposes
1.269.000.000
160.001.000
1.374.840.000
174.164.000
160.001.000
174.164.000
42600 COMMISSIONER FOR INFORMATION OF PUBLIC
160 Expenditures without differentiation by purposes
147.300.000
132.884.000
41000 COMMISSARIAT FOR REFUGEES
IMPORTANCE AND PERSONAL DATA PROTECTION
51
Subtotal
52
52
Subtotal
53
53
Subtotal
54
54
Subtotal
55
43300 EQUAL RIGHTS’ PROTECTION COMMISSIONER
160 Expenditures without differentiation by purposes
147.300.000
39.336.000
132.884.000
43.208.000
43100 DIRECTORATE OF RESTITUTION
160 Expenditures without differentiation by purposes
39.336.000
61.912.000
43.208.000
70.867.000
12500 DIRECTORATE OF RAILWAY TRANSPORTATION
450 Expenditures without differentiation by purposes
61.912.000
47.400.000
70.867.000
53.874.000
47.400.000
53.874.000
42800 STATE AGENCY FOR PEACEFUL RESOLUTION OF
410 Expenditures without differentiation by purposes
31.770.000
22.227.000
31.770.000
22.227.000
1.825.580.000
346.054.000
2.065.231.000
0
LABOR DISPUTES
55
Subtotal
56
41100 ADMINISTRATION FOR JOINT OPERATIONS OF
130 Expenditures without differentiation by purposes
GOVERNMENT BODIES
Services and goods
Item
Code
Beneficiary
Function
1
2
3
4
Purposes
5
Capital maintenance and equipment
Capital maintenance
Capital maintenance
Reconstruction and improvement of the Palace of
Federation
Capital maintenance
Licensing Microsoft software
56
Subtotal
57
41102
41103
41104
41105
41106
NORTH-BACKA ADMINISTRATIVE DISTRICT
MID-BANAT ADMINISTRATIVE DISTRICT
NORTH-BANAT ADMINISTRATIVE DISTRICT
SOUTH-BANAT ADMINISTRATIVE DISTRICT
WEST-BACKA ADMINISTRATIVE DISTRICT
130
130
130
130
130
41107
41108
41109
41110
41111
SOUTH-BACKA ADMINISTRATIVE DISTRICT
SREM ADMINISTRATIVE DISTRICT
MACVA ADMINISTRATIVE DISTRICT
KOLUBARA ADMINISTRATIVE DISTRICT
THE DANUBIAN ADMINISTRATIVE DISTRICT
130
130
130
130
130
41112 NORTH-BRANICEVO ADMINISTRATIVE DISTRICT
41113 SUMADIJA ADMINISTRATIVE DISTRICT
41114 THE MORAVIAN ADMINISTRATIVE DISTRICT
41115
41116
41117
41118
BOR ADMINISTRATIVE DISTRICT
ZAJECAR ADMINISTRATIVE DISTRICT
ZLATIBOR ADMINISTRATIVE DISTRICT
THE MORAVICA ADMINISTRATIVE DISTRICT
41119 RASKA ADMINISTRATIVE DISTRICT
41120 THE RASINA ADMINISTRATIVE DISTRICT
41121 THE NISAVA ADMINISTRATIVE DISTRICT
41122 THE TOPLICA ADMINISTRATIVE DISTRICT
41123 PIROT ADMINISTRATIVE DISTRICT
41124 THE JABLANICA ADMINISTRATIVE DISTRICT
41125
41126
41127
41128
41129
THE PCINJA ADMINISTRATIVE DISTRICT
KOSOVO ADMINISTRATIVE DISTRICT
PEC ADMINISTRATIVE DISTRICT
PRIZREN ADMINISTRATIVE DISTRICT
KOSOVSKA MITROVICA ADMINISTRATIVE DISTRICT
41130 KOSOVSKO POMORAVLJE ADMINISTRATIVE
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Fixed asset rollover
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Purchase of automobiles
Continuation of the commenced works in investment
130 Expenditures without differentiation by purposes
Compliance with the law
Payment of the remaining debts
Purchase of computers
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
Purchase of vehicles
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
Archives reconstruction
Carpentry works
130 Expenditures without differentiation by purposes
Replacement of woodwork and electric installations in the
business premises of Raska administrative region
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
Purchase of automobiles
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
Severance pay to employees whose services are no longer
needed
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
130 Expenditures without differentiation by purposes
DISTRICT
57
Subtotal
58
13300 MINISTRY OF TRADE AND SERVICES
410 Trade and Services System regulation
Market control and supervision
Establishing a modern market of goods and services
Improving the institutional framework for the goods market
development
Strengthening entrepreneurship and competition in trade in
RS
Improving consumer protection in the area of services in RS
Stimulating and supporting the presence of Serbian
companies in the international market
Improving competition in the services market
Improving product and service quality in RS
Implementation of Stabilization and Association Agreement
IPA 2009 Improving consumer protection in the area of
goods in RS
Development and positioning of Serbia's national brand
Harmonization of regulations in the field of trade and
services with the EU legislation
Improving the development and strengthening the capacity
of the Consumer Protection Center MTU
2013 Beneficiary’s
request (without
d 6
)
486.000.000
in RSD
2013 - LIMIT
7
0
0
0
0
0
0
2.657.634.000
15.130.000
9.811.000
13.461.000
13.725.000
13.855.000
17.247.000
9.727.000
10.256.000
15.321.000
13.350.453
300.000
10.951.000
238.000
200.000
17.739.000
15.051.000
11.501.000
13.049.119
31.072.000
10.567.000
1.500.000
18.059.000
2.065.231.000
17.854.000
11.209.000
14.833.000
15.492.000
15.721.000
0
19.102.000
11.046.000
11.634.000
17.774.000
14.267.000
0
0
12.442.000
0
0
0
19.360.000
17.779.000
0
12.669.000
14.487.000
27.921.000
11.923.000
0
0
20.347.000
10.673.000
14.565.051
0
14.640.000
23.004.000
10.861.000
0
11.364.000
15.640.000
9.711.000
18.027.000
6.068.000
5.799.000
0
10.013.000
21.149.000
6.855.000
6.712.000
12.437.000
12.537.000
9.151.000
10.964.000
390.810.623
737.522.000
61.260.000
3.000.000
429.599.000
845.518.000
41.409.000
1.529.000
9.500.000
2.662.000
27.300.000
4.126.000
1.000.000
869.000
14.500.000
2.500.000
24.000.000
11.401.000
1.051.000
1.520.000
5.100.000
3.008.000
14.000.000
14.000.000
137.000.000
16.154.000
5.100.000
0
4.300.000
0
12.948.000
19.616.000
9.705.000
Item
Code
Beneficiary
Function
Purposes
1
2
3
4
5
13301 GOVERNMENT DIRECTORATE OF GOODS
RESERVES
58
Subtotal
59
11900 MINISTRY OF HEALTH
Forming a Trade Development Center
IPA - 2010 Market supervision
490 Ensuring functional unity between strategic and stabilizing
commodity reserves
Bringing the warehousing capacities of SDCR to optimal level
760 Expenditures without differentiation by purposes
“Health System Regulation” program
“Health Institutions Control and Supervision” program
“Sanitary supervision” program
“Medicines and Drugs Supervision” program
“Conducting the functions of general interest in health
system” program
“Stimulating the activities for massive voluntary blood
donation” program
Program “Health care for persons serving time in prison and
taking the security measures of mandatory psychological
treatment, care and health protection of persons with
unknown place of residence”
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
10.000.000
0
0
1.180.668.000
1.206.105.000
162.137.000
112.137.000
2.398.887.000
4.000.000
214.657.000
2.261.489.000
0
170.231.000
68.285.000
274.843.000
29.785.000
73.424.000
343.541.000
34.026.000
1.167.424.000
1.325.236.000
35.200.000
39.608.000
80.000.000
90.857.000
4.500.000
5.111.000
2.400.000
2.726.000
3.400.000
3.861.000
4.000.000
4.543.000
20.000.000
21.890.000
4.000.000
4.543.000
1.332.000.000
1.198.341.000
52.000.000
59.057.000
Public health program in the function of Biocides Institute
Public health program in the function of Antirabbies Institute
(protection from the rabbies) “Luis Pasteur”, Novi Sad
Public health program in the function of Virology, Vaccine
and Serum Institute “Torlak”
Public health program in the function of the Serbian Work
Medicine Institute
Program “Improving health of special groups of population”,
including the project “Roma health care plan
implementatoin”
Program “Improving health of population for illnesses of
special social and medical importance” including the “Projcet
TBC by implementing the DOT strategy” and project
“Improving the national response to HIV/AIDS”
Program “Participating in financing construction and
equipping of health institutions”
Program “Improving the transfusion and transplantation
departments”, including the projects: “Providing conditions
for transplantation of hematopoietic stem cells for children”
and “Providing conditions for transfusion and
transplantation of organs for adults”
Program “Health care system work quality improvement”
comprising the World Bank “DILS” project
0
Program “Support to Non-governmental Organizations”
which includes the projects: “Stimulating the activities of
professional organizations, councils and associations”;
“Activities of the Serbian anti-cancer association and
Vojvodina anti-cancer association”; “Activities of clinical
treatment and curing of HIV infected and persons who
developed AIDS” and “Public powers entrusted to the Red
Cross of Serbia”.
11902 BIOMEDICINE ADMINISTRATION
59
Subtotal
60
13700 MINISTRY OF EDUCATION
13701 PRIMARY EDUCATION
13702
13703
13704
13705
13709
SECONDARY EDUCATION
STUDENT STANDARD
COLLEGE AND UNIVERSITY EDUCATION
STUDENT STANDARD
INSTITUTE FOR EDUCATION IMPROVEMENT
Program of “Providing compulsory health insurance to
persons without own income” - Health care for persons
deemed insurees under Article 22, para. 1 of Law on Health
Insurance.
IPA - 2010 Life care department development
760 Project “Biomedicine Administration Regulation”
980 Expenditures without differentiation by purposes
910 Expenditures without differentiation by purposes
IPA - 2008
920 Expenditures without differentiation by purposes
960 Expenditures without differentiation by purposes
940 Expenditures without differentiation by purposes
960 Expenditures without differentiation by purposes
980 Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
11.400.000
12.378.000
11.576.000.000
667.796.000
0
49.889.000
71.076.000
14.954.970.000
689.284.000
53.207.458.000
23.712.379.000
2.920.803.000
20.817.713.000
5.416.833.000
44.515.000
124.400.000
14.814.000
72.122.533
4.107.058.000
790.144.000
61.957.627.000
0
27.916.800.000
3.280.311.000
25.862.270.000
6.072.535.000
111.927.000
0
0
16.084.000
0
Item
Code
Beneficiary
Function
Purposes
1
2
3
4
5
Expenditures without differentiation by purposes
Expenditures without differentiation by purposes
980 Expenditures without differentiation by purposes
13710 INSTITUTE FOR EDUCATION QUALITY
ASSESSMENT
2008 IPA Project
Developing educational standards for the end of general
high school education for four subjects; Preparing a program
and instruments of final exam in primary schools;
Conducting a survey on programs and exams in the
education system
Assessment of pilot programs in primary and secondary
education
Developing educational standards for the end of general
high school education for four subjects; Preparing a program
and instruments of final exam in primary schools;
Conducting a survey on programs and exams in the
education system
Assessment of pilot programs in primary and secondary
education
Developing educational standards for the end of general
high school education for four subjects; Preparing a program
and instruments of final exam in primary schools;
Conducting a survey on programs and exams in the
education system
Assessment of pilot programs in primary and secondary
education
60
Subtotal
61
10400 MINISTRY OF PUBLIC ADMINISTRATION AND LOCAL
110 Expenditures without differentiation by purposes
SELF-GOVERNMENT
Severance pays for retirement
Central system for electronic processing and registry books
warehousing
Assistance to local communities in undeveloped units of
local government
Project of establishing a Regional school for public
administration
Professional development of registrars project
Instituting a Unique Polling Roll
Electronic exchange of data on citizens - Ministry of Public
Administration and Local Self-Government/Ministry of
Internal Affairs
61
Subtotal
62
12100 MINISTRY OF RELIGION
840 Regulation of government’s cooperation with churches and
religious communities
Implementing government’s cooperation with churches and
religious communities
Religious education
Assistance to churches and religious communities
62
Subtotal
TOTAL
2013 Beneficiary’s
request (without
d 6
)
in RSD
2013 - LIMIT
7
7.832.467
14.340.000
0
0
51.987.000
41.369.000
0
0
0
0
0
15.000.000
0
3.000.000
0
107.112.481.000
126.049.067.000
218.500.000
110.000.000
139.368.000
124.928.000
50.000.000
37.144.000
100.000.000
100.000.000
12.000.000
60.000.000
20.000.000
13.628.000
5.429.000
0
10.000.000
0
580.500.000
420.497.000
53.192.000
41.399.000
260.000.000
200.000.000
320.000.000
200.866.000
157.436.000
257.696.000
833.192.000
942.335.982.862
657.397.000
882.012.640.000