Serbia’s budget for 2023 will be in deficit
2022.12.09 07:08
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Serbia’s budget for 2023 will be in deficit
Budrigannews.com – On Friday, Parliament approved Serbia’s budget for the upcoming year, which projects growth of 2.5 percent of national output and a deficit of 3.3%, down from a projected 3.9% deficit for 2022. This comes as the country struggles with a crisis brought on by the war in Ukraine.
Revenues are estimated at 1,843.4 billion dinars ($16.61 billion) and expenditures are estimated at 2,107.4 billion dinars in the spending plan.
Public debt is anticipated to be approximately 56.1% of GDP, and borrowing domestically and abroad would pay for the deficit.
According to Prime Minister Ana Brnabic, the budget, which was approved by 156 of the 250 members of the parliament, has been tailored to preserve fiscal stability and standard of living.
Brnabic told parliament, “We will continue to fight for constant raises of (public sector) wages and pensions.”
Additionally, the spending plan calls for allocating 6.8% of total funds to capital expenditures, primarily in infrastructure.
Economic growth in 2023 is anticipated to be the same as in 2022, according to the budget. The International Monetary Fund stated a month ago that it anticipates Serbia’s economy expanding by 2.25 percent next year.
To assist Serbia in coping with the effects of the global economic slowdown brought on by the war in Ukraine, the country and the International Monetary Fund (IMF) reached a two-year loan agreement worth 2.4 billion euros ($422.08 million) last month.
The advisory body for the government’s Fiscal Council issued a warning that the expenditures of 1.8% of GDP for the closure of the state-run, losing EPS power utility and the Srbijagas gas retailer are excessive.
The council stated in its review that “the burning problems of Serbia’s public finances are… catastrophically bad operations of EPS and the losses of Srbijagas.”
Gazpromneft and Gazprom own Serbia’s NIS oil monopoly, which is entirely dependent on Russian gas (MCX:).
The EPS has been mismanaged for decades, primarily in its coal-fired power plants, which produce approximately 70% of the nation’s electricity.
