November 6 (SeeNews) - Serbia's government proposed to increase the projected fiscal deficit in the 2020 budget to 483 billion dinars ($4.9 billion/4.1 billion euro) to cover the costs of strengthening the healthcare sector's capacity and limit the adverse impact of the COVID-19 pandemic on the economy, it said.
Revenues are envisaged at 1.291 trillion dinars and spending is forecast at 1.774 trillion dinars under the proposed second revision of this year's budget, the government said in a statement on Thursday.
It did not say what the deficit will be equivalent to as percentage of GDP.
In the previous revision of the 2020 budget approved in April the government envisaged a 381 billion dinars fiscal deficit, based on revenues of 1.245 trillion dinars and expenditures of 1.626 trillion dinars.
The government also revised its forecast for a decline of Serbia's gross domestic product (GDP) in 2020 to 1.0%, compared to a contraction of 1.8% projected previously.
Under the proposal, the government will provide additional funding for the acquisition of equipment by hospitals taking care of COVID-19 patients and for the construction of specialised hospitals for the treatment of the disease in Belgrade and Krusevac, it said.
The government also plans additional transfers to the Health Insurance Fund for the procurement of equipment and medicines as well as more funds for capital investment projects, extended implementation of the economic assistance programme, allocation of subsidies to support the hotel industry, the maintenance of state roads, the construction of motorways, as well as the agriculture sector.
The proposed changes need parliament approval to take effect.
Serbia's budget was in deficit of 364.2 million dinars in the first nine months of 2020, compared to a surplus of 49.9 billion dinars in the like period of 2019, according to finance ministry data.
(1 euro = 117.567 dinars)