Blagoje Paunović, the newly appointed president of Serbia’s Fiscal Council, has evaluated the state of Serbian public finances as solid and well-organized. He praised the fiscal policy as sustainable and aligned with the economy’s capabilities.
In an interview with Forbes Serbia, Paunović acknowledged that while public finances are in good shape, attention must be paid to potential risks, particularly regarding capital investments. He noted that despite favorable revenue collection, the postponement of fiscal rules until 2029 necessitates careful monitoring of salary and pension expenditures, as well as capital investment costs.
Paunović emphasized that capital expenditures are a crucial use of budget funds, but stressed that these investments should be directed toward projects with the highest impact. He expressed concerns over the transparency and effectiveness of current capital investment plans, given the substantial amounts of money involved.
While he commended the progress made in road infrastructure, Paunović underscored the need for further investment in railway systems, communal infrastructure, and other projects. He cautioned that some proposed projects, such as those related to EXPO 2027, might not yield the greatest benefits.
Addressing concerns about the potential loss of independence of the Fiscal Council, Paunović expressed surprise at the skepticism and reaffirmed his commitment to maintaining the Council’s objectivity and professionalism. He emphasized that the Council’s work will be based on objective data and expert analysis, countering any perceptions of political influence.
Paunović, a professor of business economics at the Belgrade Faculty of Economics, was elected last week by the Serbian Parliament to lead the Fiscal Council. His appointment follows the nomination by President Aleksandar Vučić, adhering to the legal framework governing the institution.
