The Serbian National Assembly approved the 2025 budget, which projects revenues of 2,346.2 billion dinars and expenditures of 2,660.2 billion dinars, resulting in a fiscal deficit of 3% of GDP. The budget was passed with 144 votes in favor, marking a significant step in the country’s fiscal planning.
Serbia’s First Deputy Prime Minister and Minister of Finance emphasized that this is the first budget since Serbia achieved an investment-grade rating from Standard & Poor’s. The budget reflects continued focus on economic growth, large-scale capital investments, and improving the standard of living for citizens, particularly in light of global economic challenges.
Minister Mali highlighted that the budget aims to further strengthen the Serbian economy, support citizens and businesses, and address the impact of global challenges with minimal negative consequences for the country. The budget will also provide for investments in infrastructure, energy, healthcare, education, and science, as well as preparations for the 2027 Expo in Serbia, which is expected to enhance the country’s global position.
The projected revenue for the 2025 budget is 2,346.2 billion dinars, an increase of 8% compared to the revised 2024 budget. Projected expenditures are set at 2,660.2 billion dinars, with a fiscal deficit of 3% of GDP. The government has worked closely with the International Monetary Fund to ensure that the budget supports large investments while maintaining fiscal stability.
The Ministry of Finance projects GDP growth of 4.2% in 2025, surpassing the global average of 3.2% as forecasted by the IMF. Serbia’s economy is expected to continue recovering faster than other European nations, with a public debt projection of 47.5% of GDP, well within a safe zone compared to the European average of around 90%.
The budget also includes significant increases in social spending, including pension increases (10.9% from December 1, 2024), public sector salary hikes (8-11% starting January 2025), and a 13.7% increase in the minimum wage.
Notable allocations in the budget include:
- Record funding for the Ministry of Defense and the Serbian Army (261.8 billion dinars, or 2.53% of GDP)
- Significant funding for the Ministry of Kosovo and Metohija (17.2 billion dinars)
- Increased support for agriculture, with a total allocation of 149.5 billion dinars (7.5% of the budget)
- A 17.1 billion dinar increase in funding for the Ministry of Labor, Employment, Veteran and Social Affairs
- An increase in the education budget by 48.2 billion dinars, with total funding for education and local governments reaching 457.5 billion dinars (4.4% of GDP)
In the field of sports, the budget allocates 7.5 billion dinars for projects including the Belgrade Marathon and the 2025 World Wrestling Championships.
The budget also sets the stage for continued foreign investment, with capital investment planned at 7.4% of GDP, amounting to 762.9 billion dinars, ensuring the continuation of the country’s investment cycle.
Minister Mali concluded by stating that Serbia’s economic growth and stability are priorities, and the government remains committed to creating a better standard of living for all citizens through sustainable economic policies and strategic investments.
