The Serbian government decided to reallocate 11 billion dinars (about 94 million euros) from various state projects to cover costs “unknown” at the time of the 2025 budget approval. This decision came one day after President Aleksandar Vučić promised increases in salaries and pensions, though the government has not explained whether the two are connected.
The funds will be transferred to the Ministry of Finance’s budget reserve, intended to finance expenses that were not anticipated when the budget law was passed.
The decision does not specify the exact purposes for the funds, and the Ministry of Finance has not responded to inquiries.
Fiscal Council special advisor Marko Milanović pointed out ongoing issues with the use of the budget reserve in Serbia, such as:
- Unjustified use of the reserve to fund regular policies,
- Low transparency about reasons and criteria for reallocations,
- Lack of proper control and reporting.
The decision of May 22 only notes that money will be redirected from multiple institutions including ministries, local governments, and agencies, but the final usage remains unknown.
Among the biggest cuts:
- Ministry of Defense lost 3.4 billion dinars originally planned for unspecified purposes,
- 2 billion dinars were taken from the Ministry of Trade, originally meant for supporting EXPO Belgrade 2027,
- 1 billion dinars was redirected from infrastructure projects like sewage systems, ring roads, highways, and port development,
- Over 56 million dinars were taken from BIA (Security Information Agency), with no explanation.
Despite Vučić’s announcement on May 21 promising significant pension increases by the end of the year and a projection that the average salary could reach 1,147 euros by December 2026 and 1,400 euros by the end of 2027, experts consider such growth unrealistic.
Milanović emphasized it is unclear what the actual purpose of the reallocated funds is and cautioned against linking this budget move directly to Vučić’s promises, especially since multiple similar reallocations have been made this year.
He added that the fiscal year is ongoing, and further budget reserves or adjustments are likely.
