Paunovic (Fiscal Council): Serbian public finances have been in a decent state for several years

The new president of the Fiscal Council of Serbia, Blagoje Paunovic, assessed today that Serbian public finances have been in a solid, decent condition for several years, that they are quite organized, as well as that care is taken in the framework of a fiscal policy that is sustainable and corresponds to the possibilities of the economy. Paunovic told Forbes Serbia that potential risks can be numerous and that special attention should be paid to capital investments.

- By all accounts, fund collection is going well, but now that the Government has postponed the implementation of fiscal rules until 2029, it is very important to observe special rules regarding the participation of salaries and pensions, as well as the expenditures for capital investments, which are the third largest cost - said Paunovic.

Capital expenditures, as stated by Paunovic, are the best way to spend budget money, but that money should be directed towards those projects which produce the greatest effects.

When asked why he considers capital investments a risk, Paunovic said that he would not call them a risk, but that additional attention is needed with them, because it is not currently known what exactly the money is planned to be spent on and whether those projects will give the greatest effects.

- It is difficult to estimate something like that, because apart from basic information we do not know much, and we are talking about a lot of money. I am convinced that there will be good projects, that not all funds will go to the Expo 2027 exhibition - said Paunovic.

He added that the road infrastructure was done "very well", but that it is necessary to invest further in railway, communal infrastructure and other projects.

Commenting on the public's reactions to his election as president of the Fiscal Council, in which doubts were expressed that the body could lose its independence, Paunovic said that he did not expect such reactions and that he sees the Fiscal Council as an independent body and professional body whose task is defined by law, and his work, analyzes and opinions are based on objective data and expert analysis.

- I look at the Council as an extremely objective and professional body, and then suddenly I was faced with the fact that everything becomes a political issue. But well, the first results of the work will show that it was not a justified opinion - said Paunovic.

He added that he also spoke with Professor Pavle Petrovic, whom he replaced as the head of the Fiscal Council, and who told him that everyone interprets the analyzes and opinions of that institution as they see fit.

Paunovic is a professor of business economics at the Belgrade Faculty of Economics, and he was elected last week in the Serbian Parliament as the new president of the Fiscal Council, as he was nominated for that position by the President of Serbia, Aleksandar Vucic, as prescribed by the legal framework that regulates the work of this institution.

Fiskalni savet Republike Srbije

Ekonomski fakultet Beograd

Faculty of Economics in Belgrade

Expo 2027

Blagoje Paunovic

state of Serbian finances