Serbia faces corruption scrutiny amid pension and budget debates

Serbia is facing scrutiny regarding its budget priorities and corruption levels. According to Transparency International’s 2025 Corruption Perceptions Index, Serbia scored 33, ranking 116th out of 182 countries. This is the country’s worst placement in two decades and marks the first time it has ranked lower than Bosnia and Herzegovina in the region.

Analysis suggests a correlation between high corruption scores and budget allocation. While neighboring countries like Slovenia, Croatia, and Montenegro direct significant portions of their budgets toward pensions and social welfare, Serbia allocates 26.7% of its budget to capital investments—the highest in the region—while spending half as much on pensions. Critics argue that capital projects lack the oversight and legal rigidity of pension payments, making them more susceptible to mismanagement.

In response to social needs, Relja Ognjenović, Director of the Republic Fund PIO, announced several measures for pensioners. These include a 7.5% increase in pensions starting in December and additional one-time payments. Furthermore, the Fund has signed agreements with private health institutions across 130 locations in Serbia to provide discounts to pensioners via specialized cards.