Serb parliament approves 2014 budget bill targeting deficit of 4.6% of GDP

By bne IntelliNews December 16, 2013

Serbia's parliament endorsed on December 13 the 2014 budget bill targeting a state budget deficit of RSD 182.5bn (EUR 1.6bn) or 4.6% of the full-year GDP forecast, news agency Tanjug reported. The bill was supported by 134 MPs, 40 voted against. The total budget deficit including the payment of activated state guarantees and spending on saving troubled banks and companies is set at 7.1% of GDP in 2014, finance minister Lazar Krstic has said earlier.

Budget revenues for next year are projected at RSD 930bn, up 6.5% compared to the revised 2013 budget. VAT proceeds are seen at RSD 430bn, accounting for 46% of total income. Budget expenditures are likewise forecast to increase by 5.8% to RSD 1,113bn, out of which nearly 50% will go for social insurance (RSD 280bn) and employees expenses (RSD 272bn). Capital spending in 2014 will amount to RSD 52bn and will mainly finance irrigation in agriculture, refurbishment of clinical centres, research and development in the field of science. Interest payments will total RSD 114bn, up 21% y/y.

The budget assumes a 1% economic growth in 2014, slower than the 2% expansion expected for 2013 on subdued investment activity and falling private and public consumption.

Serbia needs to implement additional savings in 2014 worth around EUR 300mn or 0.8-1.0pps of GDP in order to curb its rising budget gap and put the public debt on a sustainable footing, the country’s fiscal council said at end-November. The council is elected by the parliament and is legally obliged to provide an independent assessment of the government's economic policy. It noted that the planned total deficit of 7.1% of GDP next year is too high and is among the highest in the CEE region.

Related Articles

Former Kosovan premier Ramush Haradinaj arrested in France on Serbia’s warrant

Ramush Haradinaj, a former Kosovan prime minister and the leader of the opposition Alliance for the Future of Kosovo (AAK),  has been taken into police custody in France on a Serbian arrest ... more

China’s Hesteel Group to invest $120mn in Serbia’s Smederevo steel mill

China's Hesteel Group, which acquired Serbia’s only steel mill in July, will invest $120mn in the Serbian company in 2017, ... more

Belgrade Stock Exchange joins SEE Link platform

The Belgrade Stock Exchange (BELEX) has become an active member of the regional SEE Link network, SEE Link announced on December 5. SEE Link is a project started by the Bulgarian, Macedonian and ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss