The National Bank of Serbia (NBS) will transfer RSD33.7 billion (approximately €287 million) from its 2025 profit to the national budget, providing the government with a significant source of non-tax revenue.
Speaking before parliament, NBS Governor Jorgovanka Tabaković said the central bank generated an operating profit of RSD46.1 billion in 2025. The remaining RSD12.4 billion will not be included in the immediate transfer to the state budget.
Operating profit supports government finances
The payment will contribute to budget execution by increasing non-tax revenue available to the government. Unlike tax receipts, however, central bank earnings are not a recurring or predictable source of public revenue. Annual financial results are influenced by interest-rate movements, the structure of foreign-exchange reserves, monetary-policy operations and developments in financial markets.
Returns on extensive foreign-currency reserves can increase when global interest rates rise. At the same time, higher domestic policy rates may raise the cost of liquidity-absorption operations conducted by the central bank. Reported profits can also be affected by exchange-rate fluctuations and changes in the valuation of securities, depending on the applicable accounting treatment.
Monetary policy remains the primary objective
The financial performance of the National Bank of Serbia is not directly comparable with that of commercial companies because its principal mandate is to maintain monetary and financial stability rather than maximise returns for the state as its shareholder.
From the government’s perspective, the budgetary impact of the transfer is immediate. At prevailing exchange rates, the payment is equivalent to roughly 0.25% of Serbia’s annual economic output and can support public expenditure or investment without requiring an equivalent increase in public borrowing.
The one-off nature of such transfers means they differ from structural revenue sources. Annual central bank profits may fluctuate significantly, making them unsuitable as a permanent basis for long-term expenditure commitments.
Capital buffers and fiscal transparency remain important
Market participants are also expected to assess whether the retained RSD12.4 billion provides sufficient financial buffers for the NBS. Maintaining adequate capital is important because central banks may need to absorb valuation losses or undertake costly monetary-market operations while preserving their operational independence.
The transfer comes as Serbia continues financing major public investment programmes, including projects in transport, energy and infrastructure linked to Expo 2027, while also implementing temporary fiscal measures aimed at reducing the impact of volatile energy prices on households and businesses. The transfer from the National Bank of Serbia provides additional budget resources but does not replace long-term fiscal measures such as sustainable tax collection, expenditure management and public debt financing.
