Budget surplus or deficit?

According to old methodology, Serbia has a budget surplus of EUR 52.2mn. However, according to new methodology, there is a deficit of EUR 227.2mn. Budget surplus or deficit? The Finance Ministry stated that, under the old method of calculation, to be scrapped at the end of this year, the Serbian budget had a surplus of over EUR 52mn. However, under the new internationally comparable method, whose application began in July, the budget deficit amounts to EUR 227.2mn. “The basic difference between the system used thus far and the new methodology is that the old one overestimated budget revenue (included licenses for mobile phones) and underestimated expenditure (did not include loans and reimbursements to pensioners),“ explained the ministry. Thus, the budget deficit of EUR 193mn planned for this year under the old system translates into EUR 585.7mn under the new. The Finance Ministry stresses that for the sake of comparability of figures, it will continue to compile financial reports using the old method, on the basis of which the 2008 Budget Law was adopted, but that for 2009, the internationally recognized system will be used.

Budget surplus or deficit?

The Finance Ministry stated that, under the old method of calculation, to be scrapped at the end of this year, the Serbian budget had a surplus of over EUR 52mn. However, under the new internationally comparable method, whose application began in July, the budget deficit amounts to EUR 227.2mn.

“The basic difference between the system used thus far and the new methodology is that the old one overestimated budget revenue (included licenses for mobile phones) and underestimated expenditure (did not include loans and reimbursements to pensioners),“ explained the ministry.

Thus, the budget deficit of EUR 193mn planned for this year under the old system translates into EUR 585.7mn under the new.

The Finance Ministry stresses that for the sake of comparability of figures, it will continue to compile financial reports using the old method, on the basis of which the 2008 Budget Law was adopted, but that for 2009, the internationally recognized system will be used.