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MINISTER MALI: There are no public companies that pose fiscal risk

Aroj by Aroj
November 22, 2021
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MINISTER MALI: There are no public companies that pose fiscal risk
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There are no public companies in SERBIA that represent fiscal risk, and the Ministry of Finance monitors their business from month to month and points out possible risks that could endanger their business, said Minister Siniša Mali today.

MINISTER MALI: There are no public companies that pose fiscal risk

Foto: Printskrin

At the Finance Committee in the Serbian Parliament, and responding to the statement of the President of the Fiscal Council Pavle Petrovic that Srbijagas and Air Serbia represent “fiscal risk for 2022”, Mali said that there were no substantiated data that the two companies could represent fiscal risk.

Mali added that Srbijagas, together with its daughter company Transgas, paid one billion and 15 million dinars into the budget of Serbia last year, and this year one billion and 500 million dinars.

– I do not understand the criteria on the basis of which you concluded that Srbijagas represents a fiscal risk. We in Serbia no longer have public companies that pose a fiscal risk to us, those years have passed – said Mali.

When it comes to Air Serbia, Mali stated that after the expiration of the five-year plan, in 2019, that company made a profit based on business results, without state aid.

Then, he recalls, a crisis caused by the covid-19 pandemic followed, and the state, like all other countries in Europe and the world, helped its airline, in accordance with European rules.

Mali said that the help was less in relation to how much the airlines helped other countries.

He also pointed out that many airlines in the world disappeared due to the pandemic, adding that Serbia did not want that to happen to Air Serbia.

The Minister reminded of the importance of our airline during the pandemic, which was in charge of transporting our citizens and medical equipment.

– Our strategy and policy is to have a strong national airline and Air Serbia does not represent a fiscal risk – Mali replied to Petrovic’s statement.

The President of the Fiscal Council says that the budget for next year does not show how much is planned for Air Serbia, as, as it is stated, it was not seen in the budget for this year.

– Now the question is whether something is planned at all and what is that amount. Last year, the Fiscal Council had to dig to find that amount – says Petrovic.

He pointed out that it was true that Air Serbia never received state aid, but, as he says, it compensated for the shortcomings by borrowing from the Etihad partners, which were taken over by the state.

Mali answered that Air Serbia did not borrow, but that it participated in bonds.

– Why do you talk about Air Serbia by heart and leave such an impression on the citizens as if we are confusing and hiding something? Every dinar that went to Air Serbia must be under the control of the state commission which is under the control of the EU, every dinar that enters Air Serbia goes according to the documents that were adopted – said Mali and added that all those documents are public.

When it comes to Srbijagas, Petrovic added that he mentioned “Srbijagas as a fiscal risk”, because now, due to the energy crisis, gas import prices are higher, while the state said that it would not raise prices for the population.

– In terms of calculations, that creates a loss of about, according to our estimate, 100 million euros, and the budget should have recognized that – said Petrović.

He added that the worst option is to freeze prices while external prices rise.

Mali answered that the state cannot plan assistance to Srbijagas, because it is not in accordance with European laws.

– For Srbjagas, I apologize, but you are a professor at the faculty, how can you write that we did not plan to help Srbjagas, when it cannot according to these laws. You should have written if the laws in the EU change … – Mali answered.

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