National Assembly of Serbia adopts 2017 budget in principle – Deficit of RSD 69.1 billion envisioned

The National Assembly of the Republic of Serbia adopted the 2017 budget in principle, as well as amendments to the Budget System Law and to the Law on Temporary Regulation of Pension Payment on Saturday, December 10, and the members of the parliament are to discuss more than 300 submitted amendments on the Budget Law at the continued session.

The Budget Law envisions income of RSD 1,092.9 billion and expenditures of RSD 1,162 billion, with the deficit thereby amounting to RSD 69.1 billion.

The budget deficit on the state level, including project loans in the amount of RSD 43.5 billion, amounts to 1.7% of the gross domestic product (GDP), whereas the budget deficit amounts to 1.6%. The budget has been projected based on the estimates that the GDP growth will amount to 3% and that the inflation would equal 2.4%.

The total capital investment expenditures on the state level in 2017 will amount to RSD 147 billion, which equals 3.3% of the GDP.

RSD 253.7 billion has been set aside for public service salaries, which is 0.8% more than in 2016, since the employees in a part of the public sector will have their earnings increased by 3% to 6% in January. Pensions will also increase, by 1.5%, in January.

Subsidies to mandatory social insurance organizations will amount to RSD 232.9 billion, with the Pension and Disability Insurance Fund standing to receive RSD 201.6 billion. Interest repayment expenditures will amount to RSD 133.9 billion and are lower by six billion compared to 2016.

Expenditures for the procurement of goods and services will equal RSD 105.9 billion, those for social welfare RSD 115.6 billion, and those for subsidies RSD 84.4 billion.

Tax revenues of RSD 916.8 billion have been envisioned for 2017, along with RSD 162.2 billion in non-tax revenues. Expected donations equal RSD 13.5 billion, i.e. 1.2% of the total budget income.

Budget revenues arising from income tax should amount to RSD 56 billion, which is 14.3% more than in 2016. Revenues of 29.2 billion RSD from earnings tax are planned, whereas corporate tax revenues should amount to RSD 74.4 billion, slightly more than in 2016.

Budget revenues arising from the collection of VAT have been estimated by the Government of Serbia to amount to RSD 466 billion in 2017, an increase of 4.1% relative to 2016, whereas excise tax revenues will amount to RSD 271.4 billion.

The Assembly also adopted amendments to the financial plans of the Pension and Disability Insurance Fund, the National Health Insurance Fund and the Fund for Social Insurance of Military Beneficiaries for 2016 and their financial plans for 2017.

Narodna skupština Republike Srbije

Vlada Republike Srbije

Republički fond za zdravstveno osiguranje Beograd

Nacionalna služba za zapošljavanje Kragujevac

Fond za socijalno osiguranje vojnih osiguranika

National Assembly of Serbia

Government of Serbia

budget of Serbia for 2017

2017 budget

Budget System Law

Law on Temporary Regulation of Pension Payment

budget deficit

GDP of Serbia

2017 inflation

2017 capital investments

public sector salaries

pensions

Pension and Disability Insurance Fund

National Health Insurance Fund

subsidies

2017 tax

donations

Tax Administration

income tax

value added tax

VAT

excise tax

Fund for Social Insurance of Military Beneficiaries