Serbian state budget recorded a 22 billion Dinar surplus in the period between January and July 2016 – the Ministry of Finance has announced. The Ministry’s website says that the budget surplus stands at actual 7.7 billion Dinars if we don’t count project loans, which are not part of the budget but are dealt with on the state level, into the budget expenditure.
In the period from January to July this year, the capital expenditure, covered by the funds from these project loans, grew by 3.9 billion Dinars compared to the same period in 2015.
According to the Ministry’s website, in July 2016, there was a 25.9 billion Dinar surplus in Serbia, i.e. the generated revenue stood at 104.9 Billion dinars while the expenditure amounted to 79 billion and are lower relative to the previous month. This is a result of the lower interest rates and activated bank guarantees costs.
In July, tax revenue stood at 95 billion Dinars mainly owing to the high revenue from excise (34.2 billion Dinars), and a good VAT revenue which, in the same month, reached the record high for this year and stood at 45.7 billion Dinars.
The Ministry of Finance also points out that the excise revenue in the amount of 34.2 billion Dinars is a result of several factors including a higher consumption of fuel due to the height of the agricultural season and heavier traffic, especially the transit one, as well as new tobacco excises, as stipulated in the relevant law.
The Ministry goes on to say that, in July, the income tax was also higher than in the previous months due to payment of annual income tax and dividend / profit share tax, as well as the tax on registered weapons. All of this resulted in an increase in other tax revenue.
The Ministry’s site shows that the non-tax revenue in July stood at 9.4 billion Dinars and that 0.5 billion Dinars came from donations.
It was also underlined that the non-tax revenue was much higher than originally anticipated due to the payment of dividends by public enterprises and licenses for the 4G mobile telephony.
The Ministry of Finance goes on to say that, when it comes to expenses, most money in July was spent on workforce and transfers to the organisations from the mandatory social insurance sector like the Pension and Disability Insurance Fund, the Republic of Serbia Health Insurance Fund, the National Employment Office, and the Military Social Insurance Fund.
A total of 18.7 billion Dinars was spent on salaries for civil servants while the state budget transferred 18.4 billion Dinars to the organisations from the mandatory social insurance sector. The Pension and Disability Fund got 16.7 billion Dinars alone.
At the end of July, the cumulative surplus of local self-governments stood at 8.7 billion Dinars thanks to high budget revenue in May particularly the payment of the three-month-worth of property tax and a one-off tax on the sale of land.
The budget of the Autonomous Province of Vojvodina also recorded a surplus in the amount of 1.5 billion Dinars owing to the collection of profit tax as calculated in June.
The Pension and Disability Insurance Fund had a 7.3 billion Dinar deficit while the National Employment Office and the Republic of Serbia Health Insurance Fund recorded surpluses in the amount of 1.3 and 2.1 billion Dinars respectively.
State road building and maintenance companies – Putevi Srbije and Koridori Srbije – which are mostly funded through loans, recorded the deficit in the amount of 14.5 billion Dinars.
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