Joomla 3.2 Template by Justhost Complaints

Vesic about New Year and Budget Reserve

Deputy Mayor of Belgrade, Goran Vesic, also this year publicly claims that “all investments we have for New Year will be more than ten times refunded" thus not providing any valid proof. Apparently, during last New Year, Belgrade has earned 28 million Euros, and now Vesic expects two million more.

Such an increase would, as he himself claims, be in line with the trend already realized increase in the number of tourists and overnights for 12 respectively 14 percent during the first nine months of this year, so it is unclear why the increasing number of tourists around New Year period would be in connection with the program and decoration paid by the City, as it is obvious that tourists more often visit Belgrade even when there is no such "stimulus".

"Numbering with numbers" continues with the statement that during last year "we" earned "almost 800 million of Euros" from tourism. As a data for the New Year, this obviously doesn't reflect the increasing income of the City of Belgrade, as it is almost equal to the whole City budget, but it is not clear to what it refers.

Namely, if the calculation includes all what tourists pay to state authorities in Belgrade, to local government, to private companies, and to individuals, it

would be that each of them spends more than 300 Euros every day to reach this Vesic’s calculation.  

There is simple test for accuracy of the economy calculation of (deputy) Mayor: if every invested dinar in New Year’s concerts, decorations, fireworks and similar is really refunded ten times more, than the choice is simple – all responsible budget incomes should be invested in these expenses, so the income from New Year’s tourism would be 10 billion Euros, and not current allegedly 30 million.

During the same TV appearance, Vesic also commented funds of 185 million dinars that were agreed by the Republic from the current budget reserve to the City of Belgrade. He “pointed out that this is more than natural as the City of Belgrade makes 40 percent of the Gross Domestic Product. These funds will be spent to partially cover the expenses of the restoration of 70 facades in the center of Zemun. The Government helped us by ensuring 185 million dinars, and the other part will be ensured by the City of Belgrade, about a hundred million. Nevertheless, the City itself ensured about 80 facades. During the last three years, we managed more than 300 facades on the territory of the City of Belgrade. Of course, the Government will help whenever it is necessary to the City and when it is about large projects”.  

It is natural that Belgrade, as well as other local self-government, receives part of the funds from republic transfers.

However, it is not normal that these transfers are obtained from the budget reserve. The purpose of the existence of a budget reserve is to ensure the coverage of expenses that could not have been foreseen when the budget was adopted, or to cover those expenses essential for situations where some local self-government significantly decrease incomes.

None of these reasons exist in the reconstruction of Zemun's facades. It was obviously planned earlier and this is not about repairing damage due to unforeseen events, but about the action of city beautification. It remains incomplete whether a reduced inflow into the budget of the city exists, which Goran Vesic did not want to talk about, as it would not fit into the image which city authority wants to create about them, or this legal basis for obtaining the budget funds is entirely fictional.