Belgrade: The Serbian Parliament on Wednesday endorsed the national budget for 2026, setting the stage for a year marked by significant public investment, heightened social spending, and strategic financial reserves aimed at safeguarding the country’s economic and energy security. The fiscal plan projects a deficit of 337 billion dinars, amounting to 3% of the nation’s GDP, aligning with the government’s commitment to maintain fiscal discipline while pursuing large-scale development initiatives.
According to the adopted framework, total revenues for 2026 are estimated at 2,414.7 billion dinars, while expenditures are scheduled to reach 2,751.7 billion dinars. This gap, officials assert, is calibrated to enable Serbia to sustain infrastructural momentum and support essential public services without breaching international fiscal norms. The budget passed comfortably, backed by the ruling coalition led by the Serbian Progressive Party (SNS), which holds 154 of the 250 parliamentary seats.
A key highlight of the new budget is the allocation of 164 billion dinars toward a potential government acquisition of oil company Naftna Industrija Srbije (NIS). The amount has been earmarked as a contingency in case Russian shareholders Gazprom Neft and Gazprom fail to divest their controlling stakes by the mid-January deadline. With Serbia seeking to protect its energy independence amid global market instability, this provision represents one of the most consequential financial decisions of the coming year.
Capital investment remains a core component of the 2026 financial plan, with 602 billion dinars designated for infrastructure and development projects. Notably, 47.5 billion dinars has been committed to preparations for Expo 2027, a major global event Serbia is set to host. The government hopes the exposition will enhance the nation’s international profile, boost tourism, and accelerate urban development, particularly in Belgrade.
Beyond economic and infrastructural ambitions, the budget also addresses national defense, including the phased reintroduction of mandatory military service over the next three years. This move, coupled with increased allocations for defense readiness, signals a shift in Serbia’s security posture in a changing regional environment. The government also confirmed raises in public-sector salaries and pensions, ensuring continued support for essential workers and retirees amid economic pressures.
The approved budget outlines Serbia’s intention to balance long-term strategic priorities with immediate social needs. While the country enters 2026 with a carefully managed deficit, analysts caution that external factors particularly fluctuating energy prices, inflationary trends, and geopolitical uncertainty could influence the effectiveness of the fiscal plan. Nonetheless, the budget positions Serbia to pursue growth, strengthen national institutions, and navigate an increasingly complex global landscape with a blend of caution and ambition.