Serbia's government passes 2020 draft budget with small deficit
Serbia’s government on Saturday passed a draft 2020 budget envisaging a deficit of 20.2 billion Serbian dinars ($192.40 million), or 0.3% of gross domestic product, below its International Monetary Fund target, the finance minister said, reports Trend referring to Reuters.
Sinisa Mali said the budget was based on a growth projection of 4% in 2020, up from around 3.5% this year.
Belgrade and the IMF had agreed that the spending plan for the next year would target an overall fiscal deficit of 0.5% of GDP, unchanged from this year.
Mali said the revenues were expected at 1.314 trillion dinars, while spending is seen at 1.345 trillion dinars.
The Serbian government said last week it was ready to raise wages in the public sector at the end of this year and pensions in 2020, on the back of favorable fiscal revenues and in line with a non-financial arrangement with the IMF.
The government forecasts 2020 public debt at 50.3% of GDP.
As the ruling coalition led by the Progressive Party of country’s President Aleksandar Vucic enjoys a comfortable majority in the 250-seat parliament, a vote on the budget expected later this month is considered a formality.