International Information Centre for Balkan Studies

Serbia's Govt. adopts 2021 budget draft, forecasts three pct GDP deficit

November 20, 2020

Serbia's Government adopted on Friday the budget proposal for 2021, envisaging total revenues of 1,336,3 billion Dinars, which is 45 billion Dinars more than expected earlier.

Budget expenditures are planned at 1,514,8 billion Dinars, meaning the deficit will be three percent of the GDP, the Government statement said.

It added the public debt would be reduced to 58.7 percent of GDP by the end of 2021.

From January 1, the budget envisages an increase in pensions according to the Swiss formula of 5.9 percent, minimum wages by 6.6 percent, as well as a rise in health care wages by five percent, other employees in the public sector by 3.5 percent, what will be a total increase of five percent as of April 1.

The statement added the fiscal policy measures are planned on the revenue side to reduce the tax burden on wages further. It is also planned to increase the non-taxable part of the gross salary from 16,300 to 18,300 dinars from January 1.

The budget capital expenditures will be 273.9 billion Dinars or 18.08 percent of total spending.

"The package of economic measures for reducing the consequences of the COVID-19 pandemic during 2020, create the conditions for faster economic recovery and dynamic growth in 2021. The expected economic recovery will accelerate the inflow of foreign direct investment, which will ensure full coverage of the deficit current account in 2021 ", the statement added.

(€ 1 = 117,5 Dinars)

Source:  http://rs.n1info.com/English/NEWS/a674397/Serbia-s-Govt.-adopts-2021-budget-draft-forecasts-three-pct-GDP-deficit.html

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