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,%|
|--Corporate income tax||37.0||34.9||-5.8|
|--Goods and services||131.2||127.6||-8.1|
|--Social assistance and insurance||370.3||394.4||6.5|
|Source: Ministry of Finance|
Companies from China are interested in investing in Ponikve Airport in the western Serbian town of Uzice, according to the local authorities, which have proposed an acquisition or a public-private ... more
Pensions and wages of workers in Serbia’s public sector will be increased by 5%-20% as of 2018, Prime Minister Ana Brnabic announced on October 14 when she marked the first 100 days ... more
The National Bank of Serbia (NBS) executive board decided to cut the key policy rate to 3.5% on October 9, folowing cut to 3.75% on September 7, after keeping it stable at 4% for the ... more