Serbia to borrow RSD 662 billion in 2016

The Government of Serbia plans to borrow RSD 662 billion in 2016 to cover the budget deficit and repay the principal of the loans taken out from domestic and foreign creditors for the country's direct and indirect liabilities.

The draft of the 2016 budget submitted to the Parliament of Serbia reads that loans will be taken out from domestic and international financial institutions and foreign governments in the total amount of maximum RSD 90.1 billion.

By issuing securities in the domestic market denominated in the local and foreign currencies, the state will borrow up to RSD 450 billion, while the sale of Eurobond in a foreign market will provide Serbia with another RSD 122.5 billion.

According to the draft budget for the year 2016, revenues and expenditures are expected to respectively reach RSD 997.4 billion and RSD 1,119 billion, leaving the deficit at RSD 121.8 billion.

This budget was drawn up on the basis of a forecast that GDP would grow 1.75% in 2016 and that the inflation would be at 2.8%. Tax revenues are expected to be at RSD 829.5 billion with the VAT amounting to RSD 427 billion.

Vlada Republike Srbije

Narodna skupština Republike Srbije

debt of Serbia

budget deficit

domestic creditors

foreign creditors

financial liabilities

draft budget 2016

government loans

securities

state privatization

budget revenue

budget expenditure

GDP

GDP growth

gross domestic production

inflation in Serbia

tax collection

VAT collection

donations to social funds