Serbia’s government on November 6 approved its 2026 budget, forecasting total revenues of €20.5bn, a 2.9% increase from this year, and a fiscal deficit of 3% of gross domestic product (GDP).

The budget prioritises infrastructure investments linked to the government’s Leap into the Future – Serbia 2027 programme. The plan covers 323 projects nationwide, with a total value of €17.8bn, ahead of the specialised Expo 2027 in Belgrade.

Total expenditures for 2026 are set at RSD2,751.7bn (€20.5bn), including an increase in public sector wages by 11.5%. Capital spending will reach RSD602bn (€4.5bn), slightly below this year’s level, with the largest allocation of RSD47.5bn (€355mn) earmarked for Expo 2027.

Other major projects include the Hungarian-Serbian railway (RSD14.77bn), Nis-Dimitrovgrad railway reconstruction (RSD10.87bn), the Belgrade tunnel from Karađorđeva Street to the Danube slope (RSD5bn) and the Belgrade-Sarajevo road (RSD4bn).

The budget projects a 3% economic growth rate for 2026, rising to 5% in 2027 and 3.5% in 2028. Tax revenues are expected to increase by RSD126.6bn (€945mn) to RSD2,080bn (€15.5bn), with value added tax contributing the largest share.

Excise tax revenue from the Oil Industry of Serbia (NIS) is projected to rise to RSD244bn (€1.8bn), despite US sanctions on the company. Last year, NIS paid a total of RSD244.7bn (around €2bn) into state coffers, mostly from excise duties, making it one of the largest single revenue sources for the Serbian budget.

Serbia’s debt-to-GDP ratio is projected at 44.5% in 2026, reflecting the government’s commitment to fiscal prudence even amid increased capital spending. The budget now requires approval by the Serbian parliament, with a vote expected later this month.