VUCIC: There may not be a budget deficit in 2016 at all

Prime Minister Aleksandar Vucic says that Serbia is economically stable and that it remains to be seen whether there will be a budget deficit at all, as planned.

– We have never had more money in the budget in December, even though Petrohemija's debt in the amount of EUR 105 million has been repaid and despite investments in the military equipment, arms and arms industry – Vucic said at the conference “The Economist: The World in 2017” at the National Assembly of Serbia.

According to him, the state deficit at the end of this year will amount to around 1.2% of the GDP, and it would have been 0.8% had it not been for those expenses.

– We have replaced the biggest debts with those with lower interest rates, and the banks which were unwilling to accept that have been fully repaid. What debts remain will be repaid at an interest rate of 3% – the prime minister said.

He also estimated that it would be a challenge for Serbia to achieve the planned economic growth in 2017, due to world events, primarily the decisions made by the strongest economies. He explained that, for example, the American FED had increased the benchmark rate by 1%, thereby strengthening the dollar and increasing Serbia's debt by EUR 80 million.

Vucic expects that Serbia will successfully pass the reviews of the International Monetary Fund and says that the institution has only one complaint, regarding Srbijagas, which will be discussed with its director in the coming days. He adds that the IMF has accepted the government's plan for MSC Bor and Resavica.

The prime minister also said that there would be numerous changes in the of public enterprises before the end of the year.

Vlada Republike Srbije

HIP-Petrohemija a.d. Pančevo

JP Srbijagas Novi Sad

Serbia Zijin Copper doo Bor

JP PEU Resavica

Međunarodni monetarni fond-MMF Beograd

Aleksandar Vucic

budget of Serbia

arms industry

conference The Economist The World in 2017

budget deficit

gross domestic product

GDP of Serbia

FED

benchmark rate

International Monetary Fund

IMF