At the sitting held on 30 September, the Finance Committee members discussed, in principle, the Bill amending and modifying the Budget System Law, submitted by the Government of the Republic of Serbia.

State Secretary at the Ministry of Finance Vuk Djokovic presented the Bill to the Committee members, saying that it alters the part relating to fiscal responsibility thus regulating the issue of public expenditure and achieving stability of public finances. The Bill had been drafted in compliance with the current world practice and manner in which other states regulate the issue of public expenditure, and is also connected to Serbia’s arrangement with the IMF. The Bill regulates the level of public expenditure in relation to income i.e. defines the manner in which the budget deficit is to be reduced in the years to come. According to the Bill, a Fiscal Council is to be created as a special body to monitor the implementation of the Law and report on it to the National Assembly.

In the debate on the Bill, the deputies asked the Ministry representatives various questions primarily concerning the fiscal rules for local self-governments, the issue of restitution and budgetary calendar.

Following the debate, the Committee members endorsed the Bill amending and modifying the Budget System Law, in principle, by a majority of votes.

The sitting was chaired by Branka Ljiljak, Deputy Committee Chairperson.