Serbia has increased budget support for state road operator Putevi Srbije to RSD 41 billion, as the company faces higher losses and substantial unpaid obligations to domestic contractors. The revised 2026 budget raised the subsidy allocation from RSD 19 billion to RSD 41 billion, equivalent to an increase from approximately €162 million to €350 million. The additional funding accounts for most of the extra subsidies introduced through the budget revision. Putevi Srbije used about RSD 5 billion of its subsidy during the first half of the year. The revised allocation therefore leaves up to RSD 35 billion potentially available for spending during the final six months, around seven times the amount used in the first half.
Additional funding lacks defined allocation
Serbia’s Fiscal Council said the additional financing was not linked to clearly defined priorities. Available budget documents do not specify whether the funds are intended for new road construction, maintenance, higher operating costs or overdue payments to contractors. The company’s financial position has also weakened. Its net loss increased from RSD 11.4 billion in 2024 to RSD 22.5 billion in 2025, with the latter equivalent to approximately €192 million.
Supplier obligations reach RSD 22.7 billion
Putevi Srbije’s obligations to suppliers stood at around RSD 22.7 billion, or approximately €194 million, at the end of 2025. Most of these liabilities were owed to domestic road-construction companies, exposing contractors to potential liquidity pressure when payments from the state road operator are delayed. Putevi Srbije had previously been expected to generate around RSD 7 billion in additional revenue following motorway toll increases and the extension of charges to heavy vehicles. The government initially lowered subsidies on the assumption that higher toll revenue would strengthen the company’s finances.
Toll revenue has not offset financial pressures
The subsequent increase in budget support came as higher toll revenue proved insufficient to offset operating weaknesses, accumulated liabilities and road-maintenance costs. The additional subsidy provides funding for the company while its financial position continues to reflect the combination of rising losses, supplier obligations and increased demands on the road network.
