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The Government of the Republic of Serbia

In the service of citizens

Proposal of 2021 budget revision adopted

Belgrade, 21 October 2021

At today's session, the government of the Republic of Serbia adopted the Bill amending the 2021 Budget Law, which is primarily of a developmental nature.

The total budget revenues envisaged by the rebalance amount to 1,488.5 billion dinars. Tax revenues are planned in the amount of 1,279.3 billion dinars (increase of 111 billion dinars), and non-tax revenues in the amount of 191.5 billion (increase of 21.1 billion).

In the revenue structure, tax revenues account for 85.9 percent, non-tax revenues for 12.9 percent, while the remaining 1.2 percent refers to donations.

In the revenue projection, almost all revenue categories recorded an increase compared to the previous projection, while the largest positive changes were recorded in corporate income tax and VAT. Other categories were revised upwards due to a stronger-than-expected recovery in activity.

The budget revision envisages total expenditures and expenses in the amount of 1,792.95 billion dinars. Compared to the April revision, the fiscal deficit has been reduced to 304.5 billion, mostly due to significantly better revenue realization, and it now stands at 4.9 percent of GDP, instead of the planned 6.9 percent of GDP.

The general government's public debt at the end of the year will be up to 58.2 percent, instead of 60 percent of GDP, as previously estimated.

The rebalance set aside 388.9 billion dinars, ie 6.3 percent of GDP, for capital investments, while at the level of the general government, that figure is approximately 478 billion dinars, or 7.8 percent of GDP.

The government also adopted regulations agreed with the International Monetary Fund (IMF) in April, which are part of the current arrangement, thus fulfilling certain reform goals.

Also, the Conclusion on the adoption of a single methodology for monitoring fiscal risks in the Republic of Serbia, the Strategy for Capital Market Development for the period from 2021 to 2026 and the Decree on rules and conditions for granting de minimis aid were adopted.

Also, the Decree on the conditions and criteria of state aid compliance in the form of compensation for the provision of services of general economic interest and the Decree on the conditions and criteria of state aid compliance for environmental protection and in the energy sector were adopted.

Today, important regulations in the field of state aid control were adopted, which refer to services of general economic interest, environmental protection and energy. In the Annual Report, the European Commission recognised and praised the previous legislative activities in the field of state aid control.

The government adopted the Bill on Biocidal Products, the main goal of which is to improve the system of placing on the market and use of biocidal products and treated products on the territory of Serbia.

Members of the government also adopted the Bill on Ratification of the Agreement on Mutual Recognition and Exchange of Driving Licences between the government of the Republic of Serbia and the government of the People's Republic of China, which represents an important issue for the citizens of the two countries in their daily lives.

Bearing in mind that the area of Southern Serbia has the potential to become a significant health, cultural and tourist destination, an Interdepartmental Working Group for the organisation and development of Southern Serbia was formed in the cities of Leskovac and Prokuplje and the municipalities of Kursumlija, Lebane and Bojnik, with the task of monitoring and conducting monitoring of the activities of competent institutions in the field of tourism, environment and infrastructure.