The Government of Serbia adopted today the Draft Budget Law for 2017, which envisions a budget revenue of RSD 1,092.9 billion and expenditures of RSD 1,162 billion. The planned fiscal deficit is RSD 69.1 billion.
Despite the project loans’ being included in the budget expenditures, on top of the expenditures of the Corridors of Serbia in the total amount of RSD 43.5 billion, the deficit planned for 2017 will be RSD 52 billion lower than the 2016 deficit.
Tax revenues, as envisioned, will amount to RSD 916.8 billion, of which RSD 466 billion from the VAT.
The next year’s budget is based on the projections that, in 2017, the real growth of the GDP will amount to 3%, and the retail consumer price index 2.4%.
The Government of Serbia previously also adopted the 2017 Fiscal Strategy with projections for 2018 and 2019, which preceded the preparation of the Draft Budget Law for 2017, which will be presented to the members of the parliament this month, according to the plan.
The medium-term goals in the period to come are maintaining the macroeconomic stability, further lowering the deficit to a sustainable level, along with the continuation of the fiscal consolidation measures, as well as the continuation of lowering the share of the public debt in the GDP, started in 2016, all as part of the continuation of carrying out the arrangement with the International Monetary Fund.
Thanks to successful fiscal consolidation measures, the opportunity to increase pensions and salaries in a part of the public sector arose, securing the growth of disposable income and the standard of living, without jeopardizing the goals of the fiscal policy. Establishing a tax system stimulating economic activity and employment, providing more efficient tax collection and reducing shadow economy remains one of the priorities.
Focus will also be placed on strengthening the stability and the resilience of the financial sector, removing obstacles to economic growth and raising competitiveness by carrying out thorough structural reforms, continuing to reform public enterprises, as well as increasing the overall efficiency of the public sector.
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