The total 2016 budget deficit could be half of the planned level – around 2 pct of GDP, Serbia’s Fiscal Council said Monday, noting that fiscal trends in the first seven months of the year had been excellent.
“That is a very good, much-better-than-planned fiscal result, considering that the government has planned a general government deficit of 4 pct of GDP for this year. A deficit that is half of what has been planned is a result of an extremely high revenue increase, which will more than make up for a lack of all expense cuts planned,” the Council’s monthly report said.
The sustainability of fiscal results will depend on the resolution of issues at public enterprises and the completion of privatisation of state-owned companies, which is still behind schedule in 2016, it said, citing the examples of the EPS, RTB Bor, Srbijagas and other companies.
