23.12.2016.
Press conference of Defence Minister
The press conference was held today in the Central Military Club, where Defence Minister Zoran Djordjevic and the Serbian Armed Forces Chief of General Staff General Ljubisa Dikovic talked about current activities related to the defence system, with a special emphasis on recently adopted budget of the Ministry of Defence and the Serbian Armed Forces in 2017, having in mind its specificity in comparison to other ministries and state institutions.In the introductory part of his speech Minister Djordjevic was dedicated to presenting the budget of the Ministry of Defence for 2017 with the remark that the defence budget has a tendency of development each year, which is shown by the relation of Serbian Government to the Ministry of Defence.
“We are trying to redirect that increase to investments, which, on the one hand, contributes to the improvement of operational capabilities of the Serbian Armed Forces and on the other hand to find a way to increase GDP by purchase of mainly national materiel from our defence industry”, Defence Minister stressed.
Talking about planning of the Ministry of Defence budget for 2017, Defence Minister Djordjevic emphasized that this is done on the basis of three documents-the Fiscal Strategy, Medium-term aims of the Ministry of Defence and the Instruction for the preparation of budget for 2017 adopted in August this year.
“The main characteristics of 2017 budget are that it is based on real foundations, that it primarily has a social component, more money has been allocated for operational costs. It also contains a development component because in the following period we would like to put an emphasis on equipping the armed forces with mostly national products when it comes to weapons and military equipment”, Minister Djordjevic stressed and added that 56.9 billion dinars have been appropriated for the defence budget, which is 1.34 percent of GDP.
When it comes to the structure, the defence budget is structured in such a way that it contains one programme, eight programme activities, four projects, including two capital ones, and as pointed out by Minister Djordjevic, it is expected to open three or four more new capital projects during next year related to modernization of equipment used in the Army and Air Force and Air Defence and in the field of ordnance.
Minister Djordjevic said that the finance reform in the Ministry of Defence started in 2013, when the reform of revenue was carried out, and then the control of financial resources.
Talking about novelties next year, Minister Djordjevic emphasized the introduction of controlling, and in the field of finances the management by balanced scorecards has been functioning for two years in the Ministry. Defence Minister added that the confirmation of successful work of the Ministry of Defence is the report of State Audit Institution in which the state authorities have been analysed. There are no remarks regarding the work of the Ministry of Defence in that domain and it can be taken as en example of good practice to all other ministries.
Presenting financial resources according to the category of expense, Minister Djordjevic emphasized that 60.7 percent has been appropriated for personnel costs, 30.7 percent for operational costs and 8.6 percent for investments and equipment.
“When it comes to operational costs, 145 million dinars more has been appropriated by the budget fund. Nominally, 100 million has been appropriated for the fund of special links and for paying utility and energy services because of the possessed facilities along the state border, where the Joint Military and Police Force are located”, Minister Djordjevic stressed.
Talking about novelties, Defence Minister stressed the budget resources appropriated for scientific research because there is intention to improve certain projects which would later develop in the Military Technical Institute, and then they could be presented through our defence industry as a finished product, whose export would provide income for our defence industry in the future.
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