Fiscal Council: Deficit at RSD 5.1bn in May

Fiscal Council: Deficit at RSD 5.1bn in May

In its latest, May report, the Fiscal Council notes that in the period from March to May 2014, the financial assistance was given to Srbijagas, which did not happen this year, and that is why the deficit dropped by RSD 2 billion in May.

The biggest savings, totaling RSD 7-8 billion, were made thanks to cuts in public sector salaries and pensions, including pay cuts in state-owned enterprises and local self-governments which are entered as non-tax revenues.

The state revenues were unexpectedly high because the VAT returns of RSD 5-7 billion were paid out in early June, instead of May, and the money for public investments was not spent in the planned amount.

If broken down according to the level of the government, the national budget deficit totaled RSD 6.5 billion, while other levels registered a combined surplus of over RSD 1 billion.

Quite expectedly, local level authorities have registered a surplus of around RSD 3 billion, primarily owing to the property tax collection for the first three months of 2015, reads the report.