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

PMs of Serbia and Kosovo clash at Western Balkan summit ceremonial dinner

Serbian Prime Minister Aleksandar Vucic reportedly confronted his Kosovan counterpart at the ceremonial dinner during the Western Balkan Summit, over Pristina’s decision to re-register ... more

US puts Albania, Bosnia and Serbia on blacklist of major money laundering countries

The US department of state has included Albania, Bosnia & Herzegovina and Serbia in its latest list of major ... more

27 companies submit bids for Belgrade airport concession

Serbia’s Minister of Construction, Transport and Infrastructure Zorana Mihajlovic announced on March 13 that 27 companies responded to Belgrade’s public call for a 25-year concession to operate ... 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