Serbia's Jan-Jul consolidated budget gap shrinks 26% y/y to EUR 731mn

By bne IntelliNews August 15, 2013

Serbia's consolidated budget deficit narrowed 25.9% y/y to RSD 83.3bn (EUR 731mn) in January-July 2013 as higher revenue growth offset a mild expenditures increase, data from the finance ministry showed.

The seven-month budget deficit accounted for around 2.2% of the full-year GDP forecast, down from 3.3% a year earlier, according to IntelliNews calculations based on data from the finance ministry.

The consolidated budget revenue rose 6.0% y/y to RSD 829bn in January-July, lifted by higher tax revenue. Spending inched up 2% to RSD 913bn over the period due to rising social transfers, interest and employment spending.

Income from VAT grew 9.9% to RSD 227bn in January-July, reflecting the VAT hike as of October 2012 while social contributions revenue increased 7.3% to RSD 229bn. Income from profit tax remained in the red, shrinking 5.8% y/y to RSD 35bn in January-July, reflecting deteriorated economic environment in 2012 as the economy contracted a real 1.7%.

Spending growth remained subdued as rising social transfers, employment and interest expenditures were partly offset by falling subsidies and goods and services expenses.

Capital expenditures continued retreating, declining by 38% y/y to RSD 38bn in January-July.

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

Serbia's consolidated budget, RSD bn Jan-Jul'12 Jan-Jul'13 y/y,%
Consolidated revenue 782.0 829.3 6.0
Tax revenue 690.9 739.9 7.1
--VAT 206.3 226.8 9.9
--Social contributions 213.3 228.8 7.3
--Corporate income tax 37.0 34.9 -5.8
Consolidated expenditures 894.4 912.6 2.0
Current expenditures 822.0 866.5 5.4
--Goods and services 131.2 127.6 -8.1
--Employment 210.4 223.6 6.3
--Social assistance and insurance 370.3 394.4 6.5
-- Subsidies 53.3 49.6 -14.0
Capital expenditures 61.2 37.9 -37.9
Budget deficit/surplus -112.4 -83.3 -25.9
Source: Ministry of Finance    

Related Articles

Russia keeps Serbia waiting for promised MIGs

Russia plans to deliver six used MIG 29 aircraft to Serbia by end-2017, Russia’s Federal Service for Military-Technical Cooperation (FSMTC) Director Dmitry Shugaev said on July 19, Sputnik ... more

Fiat workers end 3-week strike that halted production at Serbia's top exporter

Production at the Fiat Chrysler Automobiles (FCA) Srbija factory in Kragujevac will restart on July 19 after workers and Prime Minister Ana Brnabic agreed on the evening of July 18 to end ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more