In a recent presentation on the importance of using EU financial aid and the proper spending of these funds, attended by around 70 representatives from local self-governments, Serbian Finance Minister SiniĊĦa Mali emphasized the need for local budgets to align with Ministry of Finance recommendations. He warned that some local governments failed to meet the necessary income and expenditure projections, which will require revisions.
Mali pointed out a growing dependence of local self-governments on central government funds, stating that many local authorities expect the state to provide financial assistance at the end of the year, a practice that may no longer be sustainable. âWe barely managed to do this last year,â he said.
While local budgets and finances are the responsibility of local leaders, Mali stressed that local governments need to explore alternative financing sources for key projects within their communities. He also highlighted the importance of EU financial aid, noting that the European Union has been the largest donor to Serbia, contributing over four billion euros in grants since 2001. These funds primarily support local-level projects.
However, Mali warned local governments to change their approach to funding and to take a proactive stance in applying for EU grants. He urged them to avoid irregularities and abuses in the use of EU funds, emphasizing the countryâs zero-tolerance policy towards corruption.
Mali also provided an optimistic update on Serbiaâs economy, stating that it is the second fastest-growing economy in Europe. Despite challenges, Serbia has maintained high growth rates, increased employment, and continued investment, with public debt remaining relatively low at 44-45% of GDP, compared to the Eurozone average of 89%.
