Sunday, November 21, 2010

Ministers’ appetites larger than money for ‘Telecom Serbia’

Suzana Bojadić | 10. 11. 2010. - 00:02h | Foto: O. Bunić | Komentara: 0
The ministries requested from the Government for the next year 200 billion Dinars more from the budget than Serbia is allowed to spend, ‘Blic’ learns. This practically means that the ministers have requested 20 to 30 percent of money more than allowed as per the agreement with the IMF and the Law on budget system. Even more, some ministers intend to lobby with President Boris Tadic to get more money!


It is no secret that each year ministers are trying to get as much money as possible for their ministries. However, the year of 2011 is important because that is a pre-election year. To put it simply – more money, more promises – better ground for election campaign. Although none of the ministers in Serbian Government is ready to admit that the budget for 2011 is important, economic analysts are certain that the fact that the next year is a pre-election year explains such fierce struggle for more the money.

As ‘Blic’ learns the Ministry of economy is leading when unrealistic requests are concerned. It requested 50 billion Dinars for the 2011 budget and was requested to cut the amount by half. The Ministry for National investment plan also requested 25 billion Dinars and was requested to cut it by 15 billions.
‘However, the stronger ministries seem to have now ears and intend to insist with President Tadic to get what they want’, our source said.

Ljubodrag Savic, Professor at the Faculty of economy has no dilemma that the 2011 budget is going to be pre-electoral.

‘The Government has made a proposal surpassing legal possibilities. Due to huge appetites, the ministries have at the very beginning violated agreement with the IMF’, Savic told the ‘Blic’.


Financing of budget deficit in the next year shall be a real problem and the 2011 budget has been already as stumbling block in negotiations with the IMF. Requests for increase of consumption are too large.

Economist Miroslav Zdravkovic believes that the IMF is not going to accept the wish list.

‘The ministers can fight for their budget but the problem is that there is no source to finance the deficit from. The money from sale of ‘Telecom Serbia’ can be used but then there shall be no money to invest in infrastructure as promised’, Zdravkovic explains.

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