Serbia's 2027 Budget: How Temporary Financing Works After 20 December

Serbia's parliament must adopt the state budget for the next year by 20 December. With the new assembly meeting for the first time only on 17 November and a government still to be formed by the Student List majority, economists and the caretaker finance minister have said the country may enter 2027 under temporary financing. On Wednesday, 11 November, Bojan Stanić of the Serbian Chamber of Commerce told RTS this would not threaten the state's functioning but could weigh on investor confidence.

What the budget calendar says

Under the Budget System Law the finance minister sends a draft budget to the government by 1 November, the government adopts a budget proposal by 15 November, and parliament votes by 20 December. If that deadline is missed, temporary financing applies from 1 January. Caretaker Finance Minister Siniša Mali said on 4 November that whether and when Serbia gets a new budget is a question for those who come next.

What temporary financing allows

Temporary financing covers the first three months of the year and can be extended if no budget is adopted by mid-March, according to the legal overview published by Paragraf. During that period spending may be planned at no more than one quarter of the previous year's budget. Debt repayments are made as they fall due, and the pension fund may also include the effect of regular pension indexation. The state may not issue guarantees for state-owned companies or take new project loans; it may borrow only to cover the deficit and service existing debt.

What it means for salaries and pensions

Public-sector salaries, pensions and other benefits set by existing law continue to be paid, and increases already decided should still apply, economists quoted by Srbija Danas said. What stops is new spending: big new projects and obligations beyond existing plans have to wait for a regular budget.

Has it happened before?

Yes. Serbia used temporary financing in 2007 after the 2006 election, and the 2007 budget was adopted only on 22 June that year, according to Paragraf.

Why investors are watching

Stanić said the regime itself is not dramatic but long uncertainty can delay company decisions on investment and expansion. He said activity is already slowing in construction and transport, that most analysts expect 2027 growth below the earlier 4–4.5% projection, and that he hoped for about 3%. He added that Expo 2027 should not be called into question, as more than 140 countries have confirmed participation.