Serbia Approves 2026 Budget Revision, Financial Aid Package for Citizens

The Serbian government has finalized a budget revision for 2026, alongside a new law designed to offer financial relief to various segments of the population. This move aims to support citizens through economic challenges and bolster investments in crucial capital projects.

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When it comes to revenues, tax revenues are planned in the amount of 2,108.3 billion dinars, and non-tax revenues in the amount of 382.9 billion dinars. In the structure of total revenues, tax revenues participate with 83.4 percent, non-tax revenues with 15.2 percent, and donations with 1.4 percent.

The revised budget anticipates total revenues and receipts amounting to 2,527.15 billion dinars, an increase of 112.45 billion dinars. Tax revenues are projected at 2,108.3 billion dinars, with non-tax revenues at 382.9 billion dinars. The government forecasts an economic growth of 3.3% for 2026, with the Gross Domestic Product (GDP) expected to reach 95.3 billion euros. Public debt is projected to remain at 43.8% of GDP at the central government level and 44.2% for the general government. Inflation forecasts have been adjusted downward to 3.4% due to more favorable price trends observed since the beginning of the year.

A key component of the government's plan is a one-time financial support package aimed at mitigating the effects of the energy crisis and rising living costs. Pensioners will receive varying amounts based on their pension size: 35,000 dinars for those receiving up to 31,092.11 dinars, 27,500 dinars for pensions between 31,092.12 and 56,822 dinars, and 20,000 dinars for pensions exceeding 56,822 dinars. Recipients of child benefits, social assistance, and war veterans will each receive 25,000 dinars, while war veterans not receiving benefits will get 10,000 dinars.

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More favorable price movements since the beginning of the year have created room for a slight downward revision of the average inflation projection for 2026, to 3.4 percent.

Furthermore, the law introduces a 6,000 dinar payment for all citizens who did not qualify for free shares. These citizens must apply online through the Treasury Administration portal between September 7 and September 21 to receive this benefit. The government also approved the minimum wage for 2027, setting it at 405 dinars per hour before taxes and contributions, a 9.2% increase, leading to a monthly minimum wage of 70,470 dinars, approximately 600 euros.

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Financial support is paid to beneficiaries of pension and disability insurance in the amount of 35,000 dinars, for individuals whose pension for August 2026 amounts to up to 31,092.11 dinars; 27,500 dinars, for individuals whose pension for August 2026 amounts from 31,092.12 to 56,822 dinars; 20,000 dinars, for individuals whose pension for August 2026 amounts to more than 56,822 dinars.

In addition to economic measures, the government passed amendments to the Law on Churches and Religious Communities. These changes will allow churches and religious institutions to expand their activities across all educational levels and integrate into the national education system. The framework will ensure uniform quality standards, licensing, and accreditation, while respecting the specific nature of institutions founded by religious communities. Special attention is given to higher education institutions of the Serbian Orthodox Church, recognizing their significant role in education, science, culture, and the preservation of Serbian national identity.

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At the same time, this law explicitly introduces the right to a one-time cash benefit of 6,000 dinars for all citizens who, for any reason, have not acquired the status of a right holder within the meaning of the regulations on free shares. To receive this benefit, it is necessary to apply electronically via the Treasury Administration portal from September 7 to September 21.