The additional spending, part of rebalancing the country's 2008 budget, will increase the projected budget deficit to 2.0% of the gross domestic product (GDP) from 0.5% planned previously.
Serbia will raise the 2008 public spending to 695.9 billion dinars from the previously planned 680.5 billion dinars, and the gap in the rebalanced 2008 budget will increase to 45.8 billion dinars from 40.9 billion dinars, B92 said.
The country's new government, which took office in July, raised pensions by 10% as of October while analysts say Serbia should cut its fiscal spending to avoid crucial macroeconomic blunders.
Earlier this year Serbian car manufacturer Zastava signed a 940 million euro deal with Fiat for the establishment of a joint venture company for the manufacturing of cars in Serbia.
(1 euro = 84.6964 Serbian dinars)