Budget Revision Proposal in September

The State Secretary at the Ministry of Finance Janko Guzijan announced that a revised budget will be presented to the government in September and discussed and adopted in the Serbian Parliament by mid-October. In preparing the revision, the objective of the Ministry of Finance will be to curb public expenditure and budget deficit, that is, to provide funds for additional expenses by reallocation.

The State Secretary Janko Guzijan also highlighted that the Ministry of Finance expects the budget revenues to increase by up to RSD20 billion, as a result of stronger economic growth, but also due to inflation, which will be higher than originally planned. In the first seven months of the year, revenues in state coffers were 18 percent higher relative to the same period last year.

The State Secretary at the Ministry of Finance Janko Guzijan announced that a revised budget will be presented to the government in September and discussed and adopted in the Serbian Parliament by mid-October. In preparing the revision, the objective of the Ministry of Finance will be to curb public expenditure and budget deficit, that is, to provide funds for additional expenses by reallocation.

The State Secretary Janko Guzijan also highlighted that the Ministry of Finance expects the budget revenues to increase by up to RSD20 billion, as a result of stronger economic growth, but also due to inflation, which will be higher than originally planned.
In the first seven months of the year, revenues in state coffers were 18 percent higher relative to the same period last year.

Janko Guzijan underlined that details concerning budget revision will be revealed soon, after consultations within the government. It was announced that the Ministry of Finance has been considering the option to cover a part of budget deficit by launching issuance of treasury securities.

Guzijan highlighted that the plan would involve issuance of treasury bills at the end of the year, but the decision will depend on trends in domestic interest rates, which are rather high at this moment. As the referent interest rate of the National Bank of Serbia is 15.75%, it would affect the interest rate that the Ministry of Finance could provide and which would have to be close to that number – and this would be very expensive.

The state secretary underlined that budget revenues are some 20 billion higher, because of stronger economic growth and higher inflation, but also as a result of activities undertaken by Tax and Customs administrations in combating the grey economy, said Janko Guzijan, the State Secretary at the Ministry of Finance.