Serbia adopts 2015 budget, sets deficit at 6 pct of GDP

After 19 hours of debate, Serbia's parliament adopted a 2015 budget early on Thursday, setting the consolidated deficit at 231.9 billion dinars (1.9 billion euros), or around 6 percent of national output. The budget, drafted in line with a 1-billion-euro loan deal with the International Monetary Fund, sets revenues at 924.4 billion dinars and expenditures at 1.11 billion. The consolidated deficit that in 2014 reached more than 7 percent of GDP, includes spending of municipalities and some state run firms. The 2015 budget that sets borrowing at 706.6 billion dinars, envisions financing cuts to hundreds of loss making state-run firms, and job cuts in the bloated public sector. The general government deficit is seen at 4 percent of gross domestic product and for the first time it will include expenditures for sovereign guarantees for state companies that were previously listed as non-budgeted spending.