At the sixth sitting, held on 10 December, the Agriculture Committee discussed the Republic of Serbia 2009 Budget Bill – Section 14 Ministry of Agriculture, Forestry and Water Management.

The Sitting was chaired by the Committee Chairman Zoran Masic, and attended by the Assistant Minister of Agriculture, Forestry and Water Management, Milos Milovanovic.

Assistant Minister Milovanovic briefed the Committee members on section 14 of the 2009 budget proposal stressing that the conception of next year’s budget is completely different from that of 2008 and that it will be characterised by a policy of development and investment. He stated that this year 20.5 billion dinars from the budget have been allocated to the agrarian sector i.e. 2.85% of the national budget. In 2008, the amount of 7 billion dinars from the total agrarian budget went to debt coverage, so that this year’s proposal is on a similar level to this year’s budget. He added that the subsidy beneficiaries from the next year’s budget will be strictly determined by a Government Decree, and that commercial producers will not be subsidised. Subsidies will rise from 10 000.00 dinars to 12 000.00 dinars per acre, milk premiums to 2 dinars per liter, and 8 000.00 dinar subsidies per head (of cattle) will be allocated. Also, the state will aid farmers by providing 40% of the means for equipment purchase, construction of facilities and cattle purchase.

In the discussion of the Bill, the Committee members expressed displeasure at the amount of means allocated for next year pointing out the problems Serbian farmers face. Having completed the discussion the Committee endorsed the Republic of Serbia 2009 Budget Bill – Section 14 Ministry of Agriculture, Forestry and Water Management by a majority of votes.