“No one will write anyone’s tax debts off while I am minister. There are examples of reprogramming, but I think they all produced effects,” Zugic added.
As he said, Draft Law is based on the objectives of macroeconomic and fiscal policy, it has a developmental and social component, with key vulnerability in public and tax debts, Mina-business news agency reported.
“Stability can be reached with high rates of economic growth and political stability, and everything else will be derived from that. The deficit of public spending is 0.71%, while the capital budget has a deficit component”, Zugic said explaining that 7.08% of the total deficit is predominantly a result of the construction of the highway.
According to him, the aim is to keep the current deficit of financing under strict control, which will sublimate the vulnerability of the previous period.
“Allocations for social security and capital budget are increased. The proposal has also been based on the objectives of macroeconomic and fiscal policy, the Law on Budget and Fiscal Responsibility and the present level of material consumption. Next year we have to have a balance of current public consumption, at least because of the obligations that we have in the part of the Law on Budget and Fiscal Accountability. Public debt is 58.48% and the deficit of public spending 2.98%, although it is not shown. We expect exceeding both Maastricht criteria by the end of the year” Zugic said.
According to estimates, the level of public debt will amount to above 64%, which follows the obligation to draw up a rehabilitation plan.
He said that it was not easy to collect the tax debt.
“Tax and other inspections cannot visit all blocked companies, about 14,910 of them or to go through over 60.000 of opened accounts”, Zugic said, calling for a joint work to strengthen the regulatory framework.
According to the Draft Law, this year’s the budget is €2.12bn. Of the total amount of the budget, €773m is allocated for current spending, €335m for capital spending, €625m for state budget funds and €393m for the transactions related to financing and refinancing €393m of public debt.
The discussion on the Draft Law will be continued tomorrow at the Committee’s meeting.
