State Aid in Reconstruction of Natural and Other Disasters’ Consequences Using the Budget Funds of the Republic of Serbia

Authors

  • Goran MiloševićUniversity of Novi Sad, Faculty of Law, Trg Dositeja Obradovića 1 21102 Novi Sad, Serbia
  • Cvjetana Cvjetković – IvetićUniversity of Novi Sad, Faculty of Law, Trg Dositeja Obradovića 1 21102 Novi Sad, Serbia
  • Luka BaturanUniversity of Novi Sad, Faculty of Law, Trg Dositeja Obradovića 1 21102 Novi Sad, Serbia

DOI: 

https://doi.org/10.18485/ijdrm.2024.6.2.11

Keywords: 

state aid, reconstruction, budget, natural disasters, risks, threats, public

Abstract

Financial law theory and practice emphasize the need to apply appropriate instruments to ensure the equitable use of collected public revenues, not only to achieve the fiscal interests of the country but also to address society’s non-fiscal needs. However, despite the efforts to regulate state and society, events that arise from natural forces and the effects of natural laws create risks and threats that can significantly disrupt the natural balance and tranquillity of citizens, the economy, and the broader social community. Recognizing these challenges, the Republic of Serbia has established a legal framework to provide state aid for the reconstruction of disaster consequences, aiming to restore and offer assistance to citizens and businesses that have suffered material damage. This paper explores the public’s perception of this state aid system and evaluates its effectiveness in addressing disaster impacts. The main objective of the study is to assess the effectiveness of the state aid system in mitigating the consequences of natural and other disasters and to determine the extent to which the system contributes to the protection of citizens’ property and economic stability at both micro and macroeconomic levels. The study focuses on the legal and organizational aspects of state aid in the reconstruction of disaster consequences in Serbia, examining the system’s ability to respond effectively to the needs of citizens and businesses affected by natural and other disasters. By applying scientific methods, primarily legal, economic, and security theories, the paper seeks to analyze the public’s attitude towards the implementation of the state aid system using budget funds. The research employs a structured questionnaire distributed to 215 respondents across Serbia to gather data. An analysis was conducted to identify relationships between key variables, such as trust in the aid system, perceived effectiveness, and demographic factors like age, education, and income. The findings indicate that a majority of respondents support the implementation of the state aid system and recognize its importance in mitigating disaster impacts. The study also reveals that citizens believe the system contributes to enhancing social stability and the security of both citizens and the economy. However, there are areas identified for improvement, particularly concerning transparency and efficiency in the distribution of aid. The results suggest the need for continuous refinement of the legal framework governing state aid and disaster recovery. Enhancing transparency and public awareness, as well as integrating technological solutions for aid management, could strengthen the effectiveness of the state aid system. Furthermore, engaging local communities in disaster response efforts could enhance the resilience of affected areas and improve the overall disaster recovery process.

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