At today’s continuation of the 124th meetingof the Committee on Economy, Finance and Budget, the Proposal for the 2016 Budget Law was discussed. During the discussion, members of the Committee expressed different opinions and positions regarding the proposed budget. With regard to macroeconomic indicators, the said proposal of the budget has a developmental character, as well as strong social component. There is a need for further strengthening of fiscal discipline and efficiency of the competent bodies, so that the level of tax debt could establish a downtrend. In addition, one of preconditions for the enforcement of the next year’s budget in the proposed framework is the adoption of the Law on Public Sector Salaries, which has not entered parliamentary procedure yet. Bearing in mind that the public debt will exceed the amount of 60% of GDP at the end of 2015, it was noted, during the discussion, that it would be necessary to draft a recovery programme in the year to come, in line with the Law on Public Sector Salaries.

Following a two-day long discussion, the Committee decided to propose to the Parliament to adopt the Proposal for the 2016 Budget Law.

In addition, the Committee supported the Proposal for the Law on Amendments to the Law on Personal Income Tax, which, inter alia, envisaged the reduction of “crisis” tax rate from 13% to 11%.