Budget of the Republic of Serbia
On December 10, 2020, the National Assembly of the Republic of Serbia adopted the Law on the Budget for 2021. This legislation introduces key measures designed to improve living standards in Serbia, foster financial stability, and address challenges caused by the COVID-19 pandemic.
Budget Provisions Focused on Living Standards
The 2021 Budget Law includes several important changes aimed at boosting living standards in Serbia:
- Increased revenues and expenditures: The budget forecasts total revenues of 1,336.3 billion RSD, which is 45 billion RSD more than in 2020. Expenditures are projected at 1,514.8 billion RSD.
- Pension increases: Starting January 1, 2021, pensions will rise by 5.9%.
- Higher minimum wage: The minimum labor cost will increase by 6.5%, supporting low-income workers.
- Public sector salary increases: Health workers will see a 5% salary increase. Permanent employees in the public sector will receive a 3.5% raise from January 1, followed by an additional 1.5% from April 1.
- Military salaries: Army personnel will benefit from a 10% raise starting April 1, 2021.
- Non-taxable income adjustment: The non-taxable portion of gross salaries will increase from 16,300 RSD to 18,300 RSD as of January 1, 2021.
How the Budget Law Improves Living Standards in Serbia
The government’s measures aim to enhance living standards in Serbia by reducing economic inequalities and supporting vulnerable groups. For instance, increases in wages, pensions, and minimum labor costs directly raise household income. This extra income helps families manage rising expenses and improves financial security. Additionally, the adjustment to non-taxable income boosts take-home pay for workers, making a noticeable difference in their budgets.
Responding to COVID-19 Challenges
The 2021 Budget Law also addresses the economic impact of the pandemic. By prioritizing healthcare and public services, the government strengthens its response to ongoing crises. Furthermore, these measures reduce financial pressure on citizens, improving living standards in Serbia during difficult times.
Conclusion: A Positive Step for Serbia’s Living Standards
The 2021 Budget Law demonstrates the government’s commitment to improving living standards in Serbia. By increasing wages, pensions, and minimum labor costs, it supports citizens while promoting financial stability. These reforms provide direct benefits to households and help drive Serbia’s economic recovery.