The Serbian government has adopted the Economic Reform Program for the period 2024-2026. The program aims to contribute to increasing the competitiveness of the domestic economy, fostering economic growth, creating new jobs, and improving living conditions for citizens over the next three years. The projected growth rate for 2024 is 3.5%, with an estimate of over 4% by the end of 2026.
The reform program includes a medium-term framework for macroeconomic, fiscal, and monetary policies, along with a detailed overview of structural reforms.
Full implementation of general fiscal rules that limit the deficit of the state sector relative to the achieved level of debt is anticipated in 2025. Until then, compliance with the necessary deficit and debt reduction is ensured by the Government’s Fiscal Strategy and supported by an arrangement with the International Monetary Fund (IMF), as outlined in the document.
The new Fiscal Strategy is expected to be adopted in the spring of this year, according to the Program.
“The Serbian economy, like other countries in the region and at a similar level of economic development, is influenced by numerous uncertainties. The uncertainty of economic prospects is a consequence of the further development of geopolitical circumstances, the situation in the energy sector, prospects for the growth of the most significant economic partners, inflation, and unfavorable conditions in the international financial markets,” the Program states.
The reform of the Tax Administration of the Republic of Serbia (TARS) is being implemented in the period from 2023-2025.
The strategic objectives of the tax reform are: establishing business processes and organization in line with the best international practices to increase the collection of public revenues, improving the quality of existing and introducing new types of services, profiling a new tax official of exceptional professionalism, as stated in the Reform Program.
On August 2, 2023, the government, at the proposal of the Ministry of Economy, adopted the Proposal for the Law on the Management of Companies owned by the State, which the National Assembly adopted on September 6, 2023.
Afterward, the Law came into force on September 15, 2023, and is applied after the expiration of 12 months from the date of entry into force, starting from September 16, 2024.
Defining a new energy policy involves developing a new Energy Development Strategy and defining a fair transition.
A draft of the Energy Development Strategy of the Republic of Serbia until 2040 with projections until 2050 has been prepared, as well as a Report on the Strategic Environmental Impact Assessment of the ‘Energy Development Strategy.’ Public and cross-border consultations will be conducted for these strategic documents in the coming period, as stated in the Reform Program.
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