The Speaker of the National Assembly of the Republic of Serbia Prof. Dr Slavica Djukic-Dejanovic convened the Second Sitting of the Second Regular Session of the National Assembly of the Republic of Serbia in 2008 for Thursday, 23 October 2008, starting at 3 p.m.

The National Assembly set the following agenda:

1. The Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance

2. The Bill on the write-off of interest accrued on obligations under certain taxes and contributions for mandatory social insurance

3. The Bill on loan abeyance and write-off on grounds of mandatory health insurance contributions

4. The Proposal of the Decision on the Termination of Judicial Office

5. The Proposal of the Decision modifying the Decision on the election of members of the Committees of the National Assembly of the Republic of Serbia.

Moving onto the discussion on the first item on the agenda the deputies requested that the Finance Committee vote on it, and also pointed out violations of the Rules of Procedure.

On the second day of work, 24 October, having moved onto the discussion in principle on the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance, the Speaker of the National Assembly, Prof. Dr Slavica Djukic-Dejanovic informed the deputies that the Finance Committee members had voted in principle on the first item on the agenda and proposed that National Assembly adopt it.

During the morning part of work the deputies continued to point out violations of the Rules of Procedure, request information and ask questions.

In the afternoon part of work, the deputies were addressed by the Minister of Finance, Dijana Dragutinovic, on the behalf of the submitters. Elaborating the Bill amending and modifying the Republic of Serbia 2008 Budget Law, she presented the latest macroeconomic tendencies in the country which were the basis for the budget rebalance. The rebalance adjusted the income and expenditure to the Government’s social priorities. Total income has increased to 650.2 billion dinars or 0.4% of GDP which stems from the citizens’ income tax, profit tax and from customs duties. Total expenditure has risen to 696.9 billion dinars or 0.6% of GDP, and the deficit has risen to 45.8 billion dinars or 0.2% of GDP. The reasons for the deficit lie in the increase in pensions, increase in expenditure for infrastructure projects and increase in expenditure on subventions, above all in agriculture. Minister Dragutinovic stated that the budget deficit for this year is not excessive and called upon the deputies to endorse the Bill.

For the rest of the day, the National Assembly conducted the discussion in principle on the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance.

On the third day of work, 28 October, the National Assembly continued the discussion in principle on the Bill amending and modifying the Republic of Serbia 2008 Budget Law and the unified discussion on the proposals of the decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance.

Before moving onto the discussion, the Speaker of the National Assembly, Prof. Dr Slavica Djukic-Dejanovic, reminded the deputies that on this day 150 years ago, 28 October 1858, the first Act on the National Assembly was passed and announced that the National Assembly will ceremonially commemorate the day. Stressing the necessity of a speedier passing of a new Act on the Assembly, she called upon all the Deputy Group Presidents to designate representatives to participate in the drafting of the new Bill on the National Assembly.

In the morning part of work, the National Assembly acknowledged the termination of mandate of deputy Miloljub Albijanic, elected from the electoral list For European Serbia – Boris Tadic, before the end of the term he was elected for.

The discussion in principle on the proposed budget rebalance was continued in the afternoon part of the sitting. The deputies also continued to complain of violations of the Rules of Procedure and request information.

At the end of the third day of work the Speaker of the National Assembly concluded the discussion in principle on the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance.

On the fourth day of work, 29 October, the National Assembly commenced a joint discussion in principle on the Bill on the write-off of interest accrued on obligations under certain taxes and contributions for mandatory social insurance and on the Bill on loan abeyance and write-off on grounds of mandatory health insurance contributions.

Elaborating the bills for the deputies, the Minister of Finance, Dijana Dragutinovic stressed that the bill on interest write-off on grounds of social insurance taxes, pertains to old debts, because 80% of the debts were incurred during the 1990s with only interest being attached later on. Minister Dragutinovic said that the goal of passing this bill is to enable companies to settle their current obligations regularly.

She stressed that the debtors will not be exempted from paying the original debt incurred by the end of 2007, but only from paying the interest, if they settle their current obligations in the next four years. This covers debts on ten kinds of taxes and contributions, corporate profit tax, transfer of absolute rights, turnover tax and salary fund tax among them. Minister Dragutinovic emphasised that the Bill on loan abeyance and write-off on grounds of mandatory health insurance contributions envisages that all debts on grounds of interest on unsettled obligations, incurred by the end of 2007, be abeyed until the end of 2011.

During the discussion, the deputies expressed objections to the proposed solutions, stating that the solutions will put the debtors into a more favourable position than those who have been settling their obligations regularly, and that the budget would be impaired as well.

Having completed the discussion in principle, the Minister of Health, Tomica Milosavljevic answered numerous deputies’ questions and explained that the Bill on loan abeyance and write-off on health service and insurance contributions will solve the existing problem of multiannual accumulation of debt, that is, it will ensure the sustainability of financing the health system.

By the end of the day the National Assembly had completed the joint discussion in principle on the two bills.

In the continuation of the Second Sitting of the Second Regular Session (30 October), based on the report of the Republic Electoral Commission and the Administrative Committee, the National Assembly acknowledged the verification of mandate of deputy Snezana Stojanovic-Plavsic, elected from the electoral list For European Serbia – Boris Tadic.

Also, at the sitting, the National Assembly acknowledged the termination of mandate of deputy Vidoje Petrovic, elected from the electoral list For European Serbia – Boris Tadic, before the end of the term he was elected for.

The National Assembly went on to commence a discussion in detail on the first item on the agenda – the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance. During the discussion, the deputies also complained of violations of the Rules of Procedure and requested information.

On the sixth day of work, 31 October, the deputies continued the discussion in detail on the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance. During the discussion the deputies pointed out violations of the Rules of Procedure, asked questions and requested information.

On the seventh day, 3 November, the deputies continued the discussion in detail on the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance.

Before the continuation of the discussion in detail, the deputies pointed out violations of the Rules of Procedure, asked questions and requested information. The question of the delay of the 2009 budget was reopened, and the Government was forwarded a request for an explanation why the deadlines set by the Budget System Law are disregarded.

In the morning part of work, based on the report of the Republic Electoral Commission and the Administrative Committee, the National Assembly noted the verification of mandate of deputy Miroslava Pejica, elected from the electoral list For European Serbia – Boris Tadic.

At the proposal of the Administrative Committee, the National Assembly acknowledged the termination of deputy Miodrag Miljkovic’s mandate, elected from the electoral list For European Serbia – Boris Tadic, before the end of the term he was elected for.

In the afternoon part of work, the National Assembly verified the mandate of deputy Momcilo Spasic, elected from the electoral list For European Serbia – Boris Tadic.

The deputies continued to point out violations of the Rules of Procedure and initiate topics not on the agenda.

For the rest of the day the National Assembly conducted the discussion in detail on the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance.

In the continuation of the sitting, on 4 November, the National Assembly concluded the discussion in detail on the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance.

Having concluded the discussion, the Speaker of the National Assembly, Slavica Djukic-Dejanovic reminded that, under the Rules of Procedure, the National Assembly Speaker can set a Voting Day on the Budget Bill during the sitting, without waiting for discussion in principle and detail on the other items on the agenda to be completed. She then proceeded to set 4 November as Voting Day, starting at 2.45 p.m.

Voting Day

On Voting Day, 4 November, the deputies adopted the Bill amending and modifying the Republic of Serbia 2008 Budget Law with proposals of decisions granting assent to the decisions amending and modifying the 2008 Financial Plans of the Republic Fund for Pension and Disability Insurance, the National Employment Office and the Republic Institute for Health Insurance with 127 votes in favour. The National Assembly also adopted the proposal that, before the Law is forwarded for publishing, the National Assembly Service in cooperation with the relevant services at the Government, complete a technical alignment of the text of the Law with the adopted amendments.

The National Assembly went on to conduct a discussion in detail on the Bill on the write-off of interest accrued on obligations under certain taxes and contributions for mandatory social insurance and the Bill on loan abeyance and write-off on grounds of mandatory health insurance contributions, as well as a unified discussion on the Proposal of the Decision on the termination of Judicial Office.

The deputies accepted the proposal to urgently include into the agenda the Proposal of the Decision amending and modifying the Decision on the election of Members of Committees of the National Assembly, submitted by SRP, SPS-US and G17 Plus Deputy Groups.

Since the National Assembly had completed the discussion on all the items on the agenda of the Second Sitting of the Second Regular Session, the Speaker of the National Assembly set 5 November as Voting Day, starting at 10.30 a.m.

On the ninth day of work, 5 November, with 128 votes in favour, the National Assembly adopted the Bill on the write-off of interest accrued on obligations under certain taxes and contributions for mandatory social insurance

Also, with 128 votes in favour, the National Assembly adopted the Bill on loan abeyance and write-off on grounds of mandatory health insurance contributions in its entirety, having previously accepted the Finance Committee’s amendment to the Bill.

Having completed the unified discussion on the Proposals of the Decisions on the Termination of Judicial Office, the National Assembly adopted both the Proposals by 128 votes.

The National Assembly went on to adopt, by a majority of votes, the Proposals of the Decisions amending and modifying the Decision on the election of members of the Committees of the National Assembly, submitted by the Deputy Groups For European Serbia, SRP, SPS-US and G17 Plus. The proposal that the Decision amending the Decision on the election of members of the Committees of the National Assembly of the Republic of Serbia be published in the “RS Official Gazette” was adopted unanimously.

On Voting Day, the National Assembly did not rule that the articles of the Rules of Procedure pointed out during the sitting had been violated.

Since the National Assembly had completed the discussion on all the items on the agenda and ruled on them, the Speaker of the National Assembly Slavica Djukic-Dejanovic concluded the Second Sitting of the Second Regular Session of the National Assembly of the Republic of Serbia in 2008.