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Serb Consolidated Fiscal Gap Widened to 7.3% of GDP Last Quarter

Serbia’s consolidated fiscal deficit, which includes spending by local governments and state-controlled pension and health funds, expanded to 7.3 percent of gross domestic product in the last quarter of 2012.

The shortfall rose from 4.1 percent of GDP in the third quarter of 2012, the Belgrade-based Narodna Banka Srbije said in its monthly update of key macroeconomic indicators published today. The central government’s budget gap widened to 5 percent of GDP in the fourth quarter from 3.9 percent in the previous three months, bringing the full-year average to 5.75 percent.

Premier Ivica Dacic’s Cabinet, in office since July, wants to narrow the fiscal gap to 3.6 percent of GDP this year. The budget gap narrowed 32 percent in January from a year earlier.

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