National Assembly of Serbia adopts budget for 2018

The National Assembly of the Republic of Serbia adopted the budget for 2018 on December 14, 2017. The planned income amounts to RSD 1,178 billion, whereas the planned expenditures amount to RSD 1,207 billion.

A total of 150 MPs voted for the budget, 12 were against, no votes were withheld, and two MPs didn’t vote.

The planned fiscal deficit on the level of the Republic amounts to 0.6% of the GDP, that is, RSD 28.4 billion, which is RSD 40.7 billion lower than the deficit planned by the 2017 budget.

In 2018, salary raises by 10% in the public sector and by 5% in the administration are planned, as well as pension raises by 5%.

In addition to this, more money has been secured for investments in the next years as well.

The budget for the next year is planned based on the projection of the next year’s economic growth of 3.5% of the GDP, with the GDP deflator at 2.8% and the retail consumer price index of 2.7%.

A total of RSD 128.3 billion is meant for capital investments, of which the majority, RSD 54 billion, is meant for infrastructure.

Compared to the realization in the current year, the next year’s investments will by 30% higher for the first time, amounting to RSD 180 billion on the state level and RSD 128 billion on the level of the Republic.

The budget tax revenues are expected to equal RSD 988.6 billion, of which the VAT collection should be at RSD 503.4 billion.

The main goals of the next year’s budget are to maintain the achieved macroeconomic stability and to continue implementing the fiscal consolidation measures, as well as to further reduce the share of the public debt in the GDP, a process started in 2016.

Further improvement of the tax system, which has positive effects on the economic activity and employments, while at the same time enabling more efficient tax collection and the reduction of gray economy, remains a priority.

Focus will also be placed on strengthening the stability and the resilience of the financial sector, removing obstacles to economic growth and raising competitiveness by carrying out thorough structural reforms, continuing the reform of public companies and increasing the total efficiency of the public sector.

Narodna skupština Republike Srbije

Government of Serbia

budget of Serbia for 2018

Law on the Budget 2018

salary raises in the public sector

salary raises in the administration

pension raises

salaries

pensions

Law on the Budget

budget od Serbia

budget income

budget expenditures

VAT