FINANCES

• The total inflation in the first three months was 7.6%, and just 0.9% in March, while last year it was 111%.
• A large number of various taxes, dues and pays have been abolished and a 17% unified turnover tax introduced, as the best defence against corruption which also creates conditions for shifting to the value-added tax.
• All privileges of the close-to-regime firms and individuals who had not been paying dues to the State, contributions for employees, excises and taxes - have been abolished. The tax reform has simplified the system and enabled all citizens to have insight into the State treasury. It shall not be possible any more to impose taxes without the Assembly's vote and without the public's insight. Today's Serbia tax rates are among the lowest in Europe. As soon as circumstances allow, we shall try to cut them further down.
• A decision was taken to reduce salary contributions from 105 to 65, whereby burden on the economy has been substantially alleviated.
• Taxes are progressive, with rates increasing proportionately to earnings. This means that the poor pay less and the rich pay more.
• Funds spending was checked up in ten ministries and it was established that embezzlements worth Din. 2,765,550,995 were committed. 27 criminal charges were brought against 83 responsible individuals from the former government.
• For car registration, the former 30% car-amortisation discount has been replaced by an up to 40% discount depending on automobiles' year of manufacture.
• Investments in culture can be deducted from the company gain tax, in the amount of up to 1.5% of its total income, and investments in other spheres of general interest (sports, etc.) go up to 3.5% of the total income.
• In preparation are the Law on games of chance, Law on Safe-deposit box, Law on budgetary procedure, which shall stringent discipline and state property managing.
• Salaries of ministries and employed in the state administration and public enterprises have been frozen, in order to give a chance to the employed in the economy to more easily raise their salaries in the future.
• Also prepared are the state projects that Serbia shall present at the June donor conference in Brussels, from which about $ 1.3 bill. is expected.

PRIVATISATION

• The unfair and economically inefficient privatisation has been halted, and draft of a new Law on privatisation has been proceeded to the National Assembly, conceptualised thus to protect the interests of employees, employers and the State, and to ensure foreign capital for the revival of our enterprises.
• Elaborated are Republic of Serbia Government decrees that regulate capital sale by tender and auctions, as well as the valuation and restructuring procedures in the privatisation process.
• A broad public presentation of the new privatisation concept has been carried out.       
  • Over 20 meetings with businessmen from all around Serbia, including Kosovo and Metohija.
  • Talks were conducted with major trade unions of Serbia.
  • Presentation to the professional public, along with the inclusion of the leading local experts into the team charged with the elaboration of the law.
  • Talks with over 100 potential investors.
  • Presentation at investment forums (Thessalonica, Hanover, Duesseldorf, and the Hague)
  • Presentation of the new privatisation concept to representatives' groupings in the Serbia National Assembly.
• Selection has been made of eight big enterprises that shall first undergo privatisation following the adoption of the new Law. Their privatisation shall be carried out with the assistance of the World Bank, which has earmarked $ 6-million aid for this purpose.
• Illegalities and irregularities have been established in the privatisation of 84 enterprises. Much the same, privatisation in 6 big enterprises has been analysed and a recommendation given to proceed this work within the framework of the Commission for the investigation of most serious forms of economic crime.
• Government performs management in a number of enterprises in order to prevent their further ruining, and to protect social and state ownership and employees' rights. A Ministerial Council and Expert group for the "Crvena Zastava" company have been organised and negotiations are held with its strategic partners.

ENERGY RESOURCES

• Oil trafficking that had been to the benefit of individuals only while to the detriment of the State and all citizens - is now curbed. After taking over oil import, the State has ensured already in the first half of April a considerable increase in the related proceedings coming to the budget.
• Since the State has taken over fuel import, supply to all petrol stations has been ensured, fuel quality enhanced, and environment polluting reduced.
• Preparations have been done for undertaking the overhauls of individual thermo-electric power plants and replacing defective equipment in the electric-power system.
• New management has been appointed in the Serbia Oil Industry and Serbia Electric Power Industry public enterprises.
• Electric power price was raised in order to provide necessary funds for the overhaul of the power plants that had not been overhauled for the last ten years. This shall ward off electric power restrictions in the next winter. For the first time price rise was effected in such a way to have it proportionately increased for those richest and consuming most, while for those consuming less - it has been even reduced.
• A $ 21.8 mill. aid was obtained from the international community for the import of electric power during the last winter, as well as $ 93.38 million for the power plants overhaul.

EDUCATION

• Along with the health, education has been given priority in the Republic budget. Teachers' salaries, being very low due to former authorities' lack of concern, have been raised by 160%, which makes a 47% increase in real terms. In March 2001 teachers' salaries were increased by 15 % for those employed in elementary and secondary schools and by 10% for the others, in May 2001 they shall be increased by 10%, and in June and August alike by further 6%. Teachers' share in the entire salary fund has been increased by 8.6%.
• Commissions for the amendment of the Law on elementary schools and disburdening and rearrangement of the syllabuses for the next year has started its work in the following fields: history, mathematics, and nature and society study.
• The Law on the universities from 1998 shall be abolished and the 1992 amendments of the Law on the universities shall guarantee autonomy to this institution, modern education and inclusion of our university into the world integrational processes.
• The International university center from Austria has granted DEM 500,000 for the financing of our professors', assistant lecturers' and students' participation in conferences held abroad, as well as of scholarships for postgraduate students and realisation of scientific projects.
• Arrears in the name of student hostel-accommodation allowances have been cut down from Din 378 million to Din 181 million.

HEALTH

• The Republic of Serbia budget has established priority for the financing of the health service, medical workers' salaries and medical institutions.
• Local medicines' prices have been corrected and harmonised, thus creating conditions for the arriving of the before unavailable medicines to pharmacy shops.
• A substantial aid in medicines has been obtained from the EU, and distributed to citizens through pharmacy shops and medical institutions.
• The Republic health insurance fund has at one time disbursed to citizens the over 60-day sickness allowances due for four months, amounting Din 130 million. In the coming period two-month sums shall be disbursed each month in order to settle this debt as early as possible.
• Regular disbursement of the salaries to medical workers has been ensured. In September 2000 the average salary of medical workers was Din 4,279 and today it is Din 5,648 which makes an increase of 31.9%. The government plans to increase medical workers' salaries by the end of this year by minimum 33.4%; thus the average salary by the end of the year shall be minimum Din 7,535.
• The Din 54.5 million debt of the Ministry of Health inherited from the former government has been settled.
• The Environmental protection administration has submitted over 120 project proposals for the donor conference.
• Within the Ministry of Health and Environmental Protection a Medical-Supply Department has been established, to monitor supply on the local market, local producers' obligations and medicines exports.
• Inspection was performed in 404 medical institutions and 11 charges for infractions have been brought.

CULTURE

• In progress is the elaboration of the Law on the theatre, Law on cinematography, Law on cultural heritage, foundations and funds
• Financial and logistic support has been restored to the Sterija theatre, BITEF, BEMUS, and FEST, and also financial support has been instituted for certain institutions and events which have not been enjoying Ministry's support so far (magazines "Rad" and "Republic," CENPI - Center for Theatre and Dance, ISTER Theatre, etc.)
• The Ministry has also put up the question of illegal copying and distributions within the film, musical and publishing activities.
• Also international cooperation has been intensified, particularly with the European Council, and also an international meeting was organised under the name "International cultural cooperation: European cultural network, international foundations and programs, State foundations. Who? What? Where?"

BUILDING INDUSTRY

• With the resources provided by the government, 528 flats are going to be built, and already in mid-May 320 shall be completed and in June further 208.
• In May starts the rehabilitation of 100 facilities in the Kolubara District, damaged in the last earthquake.
• A law has been drafted towards curbing illegal construction through envisaging criminal liability for legal and natural persons who undertake illegal construction, without having building and city-planning permits.
• Solidarity housing construction funds that are settling the housing problems of the most needy and poorest citizens have been transferred to municipalities' and cities' competence. Thereby we shall provide for a better control in the utilisation of the resources from this fund, and enable citizens in their municipalities to autonomously take decisions on the utilisation of the collected resources.

STATE ADMINISTRATION

• The government has held 29 sessions and proceeded 30 law drafts to the National Assembly. The government has adopted 54 decrees, 32 decisions and 38 resolutions. The government has established:
• Commission for the investigation of abuses in the sphere of economic and financial activities
• Commission for the investigation of irregularities in the ownership transformation procedures
• Commission for the establishment of state holidays
• Commission for the regulation of internal debts
• State administration council
• The government took decision to reduce the number of employees in the state administration by one fifth.
• The government took decision that ministers and other elected individuals shall not be entitled to getting flats.
• The State-administration-reform Project has been launched with the view to modernise and make the administration a true citizens' service.
• An inspection of all ministries' work has been carried out, and numerous misuses and machinations with people's money and flats have been established. Charges have been brought against all perpetrators, regardless of their office.
• Expenses of the Government and all ministries have been reduced by almost a third.
• During the first 100 days, the democratic government has spent for the work of the state administration DEM 237,367. The former government, composed of the SPS, JUL and SRS party representatives, spent for the first three months DEM 500,000!? This government has spent half of that, and its representatives have toured the world with a view to get our country back into the international organisations, establish cut off relations and attract foreign investments.
• The government had no financial affair.

LABOUR RELATIONS

• The minimum salary was set at Din 1,884 instead of the former amount of Din 280.
• The government and representatives of the three major trade unions have started a social dialogue and become partners in the reform of the economy and our society.
• As of 1 June started the disbursement of the gross earnings that shall provide for the inclusion of all the earnings of the employees (salary, hot meal, per diem and holiday allowances) into their pension base. This shall result in citizens' higher pensions, and rectifying the injustice that the old authorities did to employees by not paying contributions for social and health insurance, and ruining their future.
• Ministry for Labour and Employment, together with the representatives of the three major trade unions in Serbia (Trade Union Confederation of Serbia, UGS Independence, and Association of free and independent trade unions) started work on the elaboration of a modern European Law on Labour Relations. It also started work on the elaboration of new laws on employment and rights of the unemployed, on the trade unions, on safety at work, and employment and vocational training of the disabled. By the adoption of these laws, for the first time in our recent history labour relations rights of the employed shall be regulated in an integral way, and efficiently protected against the self-will of employers and the State.
• Initiated is the establishment of a Transition Fund for the solving of the problem of redundant labour re-training. Establishment of this Fund shall enable tens of thousands of workers to get a State-paid re-training for vocations in high demand and thus settle the problem of their employment on a long-term basis.

TRANSPORT AND COMMUNICATIONS

• About 300 million dinars have been invested in the following projects:
• repair of the Ljig-Rudnik section of the Ibar trunk road
• construction of the north by-pass road round Nis on the Nis-Dimitrovgrad route has been recommenced
• contract for the construction of a by-pass road round Kragujevac has been signed
• Resources from the EU have been provided for the clearance of the Danube bed, in order to restore navigation, and for the construction of the bridges destroyed in the bombing.
• For the donor conference numerous projects have been accepted for the construction and repair of roads in our country with, a particular accent on the highway.

SCIENCE, TECHNOLOGY AND DEVELOPMENT

• The government is elaborating the Strategy of industrial development by 2010.
• A scholarship is granted to 405 researchers.
• Realisation of 36 M.A and 16 doctoral thesis is financially supported.
• Financial support is granted for the advance training of 54 researchers abroad.
• 68 million dinars are provided for the equipping of university laboratories and libraries in Serbia.
• The problem of financing the maintenance of the RA nuclear reactor and the RB reactor operation in the Vinca Institute has been settled.

RELATIONS WITH RELIGIOUS COMMUNITIES

• Representatives of the Ministry of religions have paid visits to all the eparchy seats of the Serbian Orthodox Church in Serbia and to the seats of other religious communities.
• The Law on the freedom of religion that shall regulate legal status of the church and religious communities has been drafted. The law has been conceptualised in compliance with the EU regulations on religious freedom and particular attention shall be paid to citizens' legal protection against criminalised religious sects.
• A system of regulations has been prepared on returning religious study to elementary and secondary education. These regulations shall be harmonised with the EU regulations, needs of our society and needs of other religious communities.

TRADE AND TOURISM

• Construction of the FRY first hypermarket in New Belgrade has been contracted with the Slovenian "Merkator" company.
• Locations have been determined and negotiations started for the construction of two big hotels from the Sheraton and Hilton chain in the downtown Belgrade. After more than ten years, world's big companies are coming back to our country.
• The program of the recovery and revitalisation of the biggest chain of stores in the country, the Department Store "Belgrade" has been launched.
• Construction of a Serb market center in Moscow and of a Russian market center in Belgrade has been contracted.
• Drafts of the Law on trade, Law on consumers' protection, and Law on public ski grounds have been prepared.
• Market inspection carried out 741 controls and seized, among others, 132 tons of oil, 39,500 cigarette boxes and 95 tons of coffee that have been illegally sold.
• Sugar from the EU humanitarian aid has been distributed to FRY citizens, as well as 27,400 tons of fertilisers from the Japan government aid, and 30,700 tons of flour that were supplied to industry and private bakeries for the production of bread sold at the price of 10 dinars for a 600 g loaf.

WE INHERITED...
WE PROMISED...
SO FAR WE HAVE DONE... - Part 1
SO FAR WE HAVE DONE... - Part 2
WE PLAN...