Parliament of Serbia adopts 2012 Budget Law

Members of the Serbian parliament last evening adopted the Law on the 2012 Budget.

Under the proposed budget, revenues will stand at RSD 750 billion, expenditures at RSD 890 billion and the deficit will be RSD 140 billion.

The budget for next year is based on 1.5% GDP growth, inflation that should be below 6%, and deficit reduction from this year’s 4.5% to 4.25% of GDP.

Salaries and pensions should go up by a total of 5.5% in 2012. The adjustment will be made in April and October 2012.

The budget provides funds for the continuation of support measures to the economy, agriculture and the construction industry, whereas significant savings will be made on discretionary spending.

Of the total budget, 41.8% of total expenditures will go for social security, 15.3% for defence, public order and safety, 15.3% for education and science, 10.4% for incentives, 3.8% for other levels of government, 3% for administrative costs, and 10.4% for other functions.

128 MPs supported the law, which marked the end of the parliament’s autumn session.