Serbia's January budget deficit twice as low as projected

Serbia's budget deficit in January amounted to RSD seven billion, twice less than projected for this month, Tanjug news agency cites the Ministry of Finance and Economy as saying in a release.

At the same time, the budget deficit for January was less by RSD 3.4 billion against a year earlier.

The Ministry pointed out that for this year, Serbia's budget law projected a deficit of RSD 121.9 billion, or 3.3 percent of the country's GDP and half the deficit of the year before.

January's revenues totaled RSD 66.4 billion, while expenditures amounted to RSD 73.4 billion.

Most of the tax revenues came from payments of VAT, which totaled RSD 36.4 billion, followed by revenues from excise tax, to the amount of RSD 16.4 billion.

Other tax revenues and non-tax revenues were collected as projected for January.

January's budget expenditures were as usual, with most of the money used for the payment of salaries to employees and transfers, mainly for payment of pensions, to mandatory social insurance organizations.

The beginning of the year brought an improvement in the public finances system, according to the release.

The end of January was the deadline for tax debtors' possible entry into the system of conditional tax amnesty.

Under the changes in the VAT system for 2013, small and medium enterprises may pay VAT only after they receive the money for the goods sold.

January also brought the implementation of new provisions of the excise tax law, which stipulate the conditions for refund of excise tax on petroleum products for industrial and transportation and heating purposes, the release added.