Budget deficit RSD 3.9 billion in the first half of 2016

A budget deficit in the amount of RSD 3.9 billion was incurred in the first half of 2016, whereas in June alone a surplus of RSD 7.4 billion was made, the Ministry of Finance announced.

The wide definition of the budget deficit of the Republic of Serbia includes project loans which are not part of the budget, but are the responsibility of the state, so the deficit, by that definition, amounts to RSD 15.4 billion.

The capital expenditures financed by the project loans were higher by RSD 4.6 billion in the January-June 2016 period relative to the first six months of 2015.

An income of RSD 94.6 billion was made in June, whereas the expenditures amounted to RSD 87.2 billion, so the surplus, according to the Ministry, amounted to RSD 7.4 billion.

Tax revenue amounted to RSD 85.1 billion and non-tax revenue amounted to RSD 8.4 billion. The donations-based income amounted to RSD 1.2 billion.

As it was stated, expenditures in the amount of RSD 87.2 billion were incurred.

– In line with the debt repayment program, interest rate expenditures and expenditures for the repayment of guaranteed loans were slightly higher – the Ministry says.

The biggest expenditure items were employee expenses and transfers to compulsory social insurance organizations (Pension and Disability Insurance Fund, National Health Insurance Fund, National Employment Service, Fund for Social Insurance of Military Beneficiaries). Staff costs amounted to RSD 19 billion and, for example, the transfer to the Pension and Disability Fund amounted to RSD 16.5 billion, whereas the transfer to the national Health Insurance Fund amounted to RSD 3.4 billion.

The general state deficit in the first six months amounted to RSD 18.2 billion, whereas the deficit projected by the IMF program amounted to RSD 78.3 billion.

“A much better result than planned was made thanks to increased incomes, above all a more efficient charging of tax items such as VAT, excise taxes, contributions, income taxes”, it was stated.

On the other hand, non-tax revenue were significantly higher than expected thanks to dividend payments in public enterprises and the license for the 4G mobile network.

A surplus of RSD 6.4 billion was made in June. At the end of June, the total surplus of local self-governments amounted to RSD 9.4 billion thanks to a high income in May, which was contributed to by the payment of three-month property taxes, but also by the income made by the sale of land.

The Autonomous Province of Vojvodina currently has a surplus of RSD 1.4 billion thanks to yearly income taxes. The deficit of the Fund for Social Insurance of Military Beneficiaries is RSD 0.4 billion, and the Pension and Disability Insurance Fund incurred a deficit in the amount of RSD 7.4 billion.

The National Employment Service and the National Health Insurance Fund made a surplus of RSD 1.1 and 3.1 billion respectively. The NHIF surplus is a result of their salary payment schedule, as only half of monthly earnings are paid in January in healthcare.

The state enterprises responsible for road construction and maintenance, Roads of Serbia and Corridors of Serbia, are largely financed by loans, so their total deficit amounted to RSD 10 billion.

Ministarstvo finansija Republike Srbije

Fond za socijalno osiguranje vojnih osiguranika

Nacionalna služba za zapošljavanje Kragujevac

JP Putevi Srbije Beograd

Koridori Srbije d.o.o. Beograd

Republički fond za zdravstveno osiguranje Beograd

Republički Fond za penzijsko i invalidsko osiguranje

budget deficit of Serbia

budget surplus

Pension and Disability Insurance Fund

National Health Insurance Fund

National Employment Fund

Fund for Social Insurance of Military Beneficiaries