Government adopts draft law on budget for 2018

The Government of Serbia adopted the draft law on budget for 2018 on November 29, planning income of RSD 1,178 billion and expenditures of RSD 1,207 billion, the Ministry of Finance announced.

The planned fiscal deficit on the level of the state for 2018 amounts to 0.6% of the GDP, that is, RSD 28.4 billion, which is RSD 40.7 billion less than the deficit planned by the 2017 budget. As stated, tax revenues are expected to contribute RSD 988.6 billion to the budget, of which VAT should account for RSD 503.4 billion.

The next year's budget is planned in line with the projection saying that the real growth of the GDP in 2018 will amount to 3.5%, with a GDP deflator of 2.8% and a retail consumer price index of 2.7%.

– This projection of the growth of the GDP is based, among other things, on the element of an increased aggregate demand through salary and pension raises and the budget development orientation based on a large increase of investments – the press release says.

Compared to the realization in the current year, the next year's investments will be 30% higher for the first time, amounting to over RSD 180 billion on the state level and RSD 128 billion on the level of the republic.

The main goals of the 2018 budget, as added, are focused on maintaining the achieved macroeconomic stability and continued implementation of measures of fiscal consolidation, as well as a further reduction of the share of the public debt in the GDP, started in 2016.

– Further enhancement of the tax system, which has a stimulative effect on economic activity and employment, while at the same time enabling a greater efficiency of tax collection and reduction of gray economy, remains a priority – the Ministry of Finance announced.

The focus, as added, will also be placed on strengthening the stability and the resilience of the financial sector, removing obstacles to the economic growth and raising competitiveness by carrying out structural reforms, continuing the reform of public enterprises, as well as raising the overall efficiency of the public sector.

At the same session, the Government of Serbia adopted the Fiscal Strategy for 2018, with projections for 2019 and 2020.

This strategy is a framework for the preparation of the draft law on budget for 2018, the press release says.

Ministarstvo finansija Republike Srbije

Vlada Republike Srbije

draft law on budget

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GDP

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consumer price index

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salaries in Serbia

pensions in Serbia

wages in Serbia

macroeconomic stability

fiscal consolidation

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public debt

gray economy

reform of public enterprises

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2018 Fiscal Strategy