Serbia is increasing planned 2026 public spending after revising its revenue and receipts forecast significantly above the level set in the original budget. The revised framework puts planned revenues and receipts at around RSD 2.527 trillion, an increase of approximately RSD 112.5 billion compared with the initial plan.
At the same time, planned expenditure is being raised to approximately RSD 2.923 trillion, resulting in a projected budget deficit of around RSD 396 billion. The higher spending comes as Serbia finances infrastructure, social measures and a broader investment programme ahead of EXPO 2027.
Higher revenues create additional fiscal space
The increase in public revenue gives the government additional fiscal room to maintain expenditure on transport, utilities and urban infrastructure alongside other measures and investments. Rather than directing the additional revenue primarily towards reducing the deficit, the revised budget allocates a substantial portion of the fiscal space to higher expenditure.
The approach allows the government to continue financing its investment programme without relying entirely on additional borrowing. Serbia is simultaneously preparing for EXPO 2027 and implementing infrastructure projects, creating a higher level of public expenditure during 2026.
Revised budget based on 3.3% economic growth
The revised fiscal framework assumes economic growth of approximately 3.3% and puts Serbia’s nominal GDP at around €95 billion. The spending expansion is taking place against a backdrop in which public debt remains relatively contained as a share of economic output and nominal GDP continues to increase. These conditions provide room for higher expenditure within the revised fiscal framework.
The additional revenue could alternatively have been used to accelerate fiscal consolidation and increase the government’s fiscal buffer against external shocks. Instead, the revised budget directs more of the available fiscal capacity towards current and investment expenditure.
Infrastructure spending remains central to 2026 programme
A significant part of the government’s spending requirements is linked to transport, utility and urban infrastructure, as well as the preparations surrounding EXPO 2027. The investment component can create assets that remain in use after the exhibition, while permanent expenditure commitments represent a different type of fiscal obligation because they are more difficult to reduce once established.
The timing of the additional expenditure therefore remains linked to the broader 2026 investment cycle and the period surrounding EXPO 2027. The revised budget places greater emphasis on the use of stronger-than-planned revenues to finance this spending programme, rather than using the full increase in receipts to narrow the projected deficit.
