Nis considering cancellation of Airport subsidies – RSD 94.5 million out of 2017 budget meant for subsidizing

Aside from the rationalization of the number of employees, the Fiscal Council has suggested to the local self-government of Nis to reduce spending by not continuing the trend of subsidizing, especially when it comes to subsidies to the Constantine the Great Airport.

A report by the council says that Nis is in the worst financial state after Kragujevac and that only slightly more than a third of the households have a connection to the sewer system, while only two thirds are connected to the water supply network.

A strict control of expenditures is therefore suggested, and savings can also be made by preventing the growth of subsidies. This, as they say, pertains especially to the Airport, at which four airlines, mostly low-cost ones, have established passenger flights in the past year and a half.

No one of those in charge has so far discussed precise amounts given to the Airport, but former mayor Zoran Perisic said that the City was subsidizing the Airport “so that it could function”. In the past 10 years, a lot of money from the budget has been invested in the Airport, and the previous city authorities also called the subsidies investments in its development and increased competitiveness.

Mayor of Nis Darko Bulatovic said that, at the moment, the City was still assessing what the amount of subsidies to the Airport would be in the future.

According to the study adopted by the City of Nis in August 2014, the Constantine the Great Airport was supposed to be getting money from the city budget over the course of three years, following which it would be, as estimated, capable of operating on its own. This means that next year's budget should not include this expenditure.

– We are doing everything in our power to increase the Airport's capacity, but the subsidies in next year's budget will be far smaller, if not entirely non-existent. In any case, they will be reduced to a minimum – Bulatovic said.

This year's budget includes RSD 94.5 million meant to aid the Airport, and about a third of the amount has been paid so far, according to city council member Igor Vojinovic.

Grad Niš

Fiskalni savet Republike Srbije

Aerodrom Konstantin Veliki Niš

Nis Airport

passenger flights from Nis

Zoran Perisic

Darko Bulatovic

Igor Vojinovic