Serbia's H1 budget gap shrinks 26% y/y to EUR 727mn, 2.2% of GDP

By bne IntelliNews July 16, 2013

Serbia's consolidated budget deficit narrowed 26% y/y to RSD 82.7bn (EUR 727mn) in January-June 2013 due to a higher revenue growth which offset a mild spending increase, data from the finance ministry showed. The reading accounted for 2.2% of the full-year GDP forecast, down from 3.3% a year earlier.

The H1 consolidated budget revenue rose 6.2% y/y to RSD 693bn whereas spending inched up 1.5% y/y to RSD 776bn.

Income from VAT increased 9.6% to RSD 186bn in January-June, reflecting the VAT hike as of October 2012, while social contributions revenue grew 7.3% to RSD 194bn. Income from profit tax, however, continued retreating, shrinking 12.8% y/y to RSD 29bn.

Spending remained subdued as falling capital, subsidies and goods and services expenses partially offset rising social transfers and employment expenditures. Current spending increased 4.6% y/y to RSD 738bn (95% share in total) whereas capital expenditures shrank 37.0% to RSD 30bn.

In June alone, the consolidated budget deficit touched a record low of RSD 4.3bn due to the implementation of the recently agreed austerity measures, the finance ministry said in a statement. June's stabilization of the state budget is also the result of significant tightening of fiscal discipline and improved revenue collection, the ministry said.

However, the independent fiscal council warned earlier that it is too soon to build on the reading. The council added June’s performance might be explained by higher excise duties proceeds due to increased cigarettes imports from Croatia prior to its EU entry on July 1 and lower goods and services spending because of the planned budget rebalance.

Serbia’s parliament endorsed on July 5 the 2013 budget revision which aims to prevent the consolidated budget gap to exceed 5.2% of GDP in 2013.

Serbia's consolidated budget, RSD bn Jan-Jun'12 Jan-Jun'13 y/y,%
Consolidated revenue 652.4 693.1 6.2
Tax revenue 574.4 618.8 7.7
--VAT 169.8 186.1 9.6
--Social contributions 180.5 193.7 7.3
--Corporate income tax 33.7 29.4 -12.8
Consolidated expenditures 764.2 775.7 1.5
Current expenditures 706.1 738.4 4.6
--Goods and services 114.1 110.9 -2.9
--Employment 179.9 188.5 4.8
--Social assistance and insurance 316.0 335.4 6.2
-- Subsidies 47.7 41.1 -14.0
Capital expenditures 47.8 30.3 -36.5
Budget deficit/surplus -111.9 -82.7 -26.1
Source: Ministry of Finance      

Related Articles

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

China's Hesteel Group to boost investments in Serbia’s Smederevo steel mill

Representatives of China's Hesteel Group, which acquired Serbia’s only steel mill Zelezara Smederevo in July 2016, plan to invest ... more

French court refuses to extradite ex-Kosovo PM Haradinaj to Serbia

The Court of Appeals in the French town of Colmar decided on April 27 not to extradite Kosovo’s former Prime Minister Ramush Haradinaj to Serbia.  The decision was celebrated in Kosovo 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