Serbia is revising its 2026 budget to reflect stronger-than-planned revenue collection while also expanding government expenditure across the public sector. Under the revised fiscal framework, planned revenues and receipts are set at approximately RSD 2.527 trillion, an increase of about RSD 112.5 billion compared with the original budget plan. At the same time, planned expenditure is being lifted to around RSD 2.923 trillion, resulting in a projected budget deficit of approximately RSD 396 billion.
Higher revenues support expanded public spending
The additional fiscal capacity is being directed toward a broader spending programme as Serbia approaches Expo 2027 and continues financing transport, utility and urban infrastructure. The revised spending framework also covers social measures and a wider programme of public investment. Stronger tax collection provides additional fiscal room to finance these priorities without relying entirely on new borrowing.
The government’s approach means that the increase in revenue is being accompanied by a corresponding expansion in expenditure rather than being directed primarily toward reducing the deficit.
Fiscal framework based on 3.3% growth
The revised budget assumes economic growth of approximately 3.3% in 2026, while nominal GDP is estimated at around €95 billion. The fiscal position is supported by relatively contained public debt measured against economic output, while the expansion in nominal GDP provides additional room within the budget framework.
The stronger revenue performance has therefore created space for Serbia to maintain its investment programme alongside other public spending commitments.
Expo 2027 and infrastructure remain key spending areas
Serbia is simultaneously preparing for Expo 2027 and funding transport, utility and urban infrastructure projects. The expanded expenditure programme allows these activities to continue alongside social measures and broader investment spending. The revised budget consequently places additional fiscal resources behind projects and programmes planned for 2026.
The timing of the spending programme also distinguishes temporary investment costs from longer-term expenditure commitments. Infrastructure spending can result in assets that remain in use after Expo-related activity has ended, while permanent spending commitments continue beyond the period of elevated investment.
Revised deficit reaches RSD 396 billion
With revenues and receipts forecast at RSD 2.527 trillion and expenditure at approximately RSD 2.923 trillion, the revised budget produces a deficit of about RSD 396 billion. The increase in planned spending means that the stronger revenue performance is not translating directly into faster deficit reduction.
For Serbia’s 2026 fiscal programme, the additional revenue is instead being used to support continued public investment, infrastructure financing and social expenditure within a budget framework built around projected 3.3% economic growth and GDP of approximately €95 billion.
