The government has adopted the 2018 Budget Law with planned revenues in the amount of RSD 1,178 billion and expenditures RSD 1,207 billion.
According to a statement by the Ministry of Finance, the planned fiscal deficit at the level of the Republic for the next year is 0.6 percent of GDP, or RSD 28.4 billion, which is RSD 40.7 billion less than the deficit planned for the 2017 budget.
Budget revenues from tax collection are expected to be RSD 988.6 billion, of which VAT collection should bring RSD 503.4 billion.
The next year’s budget is planned on the basis of a forecast that in 2018 real GDP growth will be 3.5 percent, with a GDP deflator of 2.8 percent and a consumer price index of 2.7 percent.
This projection of GDP growth, among other things, is based on the element of raising aggregate demand through the increase in salaries and pensions and on the developmental orientation of the budget, which is based on a large increase in investments.
The main objectives of the next year’s budget are focused on maintaining the achieved macroeconomic stability and continuing the application of fiscal consolidation measures, as well as further reducing the share of public debt to GDP, as started in 2016.
The government has also adopted the Fiscal Strategy for 2018 with projections for 2019 and 2020.
This strategy is a framework for the drafting of the 2018 Budget Law, according to the statement by the Ministry of Finance.
(InSerbia News, 29.11.2017)
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