Fiscal and corruption scrutiny in Serbia and Gradiška

Fiscal management and budget priorities in Serbia and the Gradiška region have come under scrutiny. In Gradiška, the City Assembly proposed rebalancing the 2026 budget upward by 13.55 million KM, supported by public investment programs, despite anticipated decreases in non-tax revenues caused by the closure of the Gradiška 1 international border crossing and suspended traffic over the Sava bridge.

In Serbia, reports indicate that the 2025 budget was executed on a smaller scale than planned, with a significant shortfall in Value Added Tax (VAT) collections. This fiscal context has coincided with heightened scrutiny regarding corruption and budget allocation. Serbia’s ranking on Transparency International’s 2025 Corruption Perceptions Index reached its worst level in two decades, placing it 116th out of 182 countries.

Critics have noted that Serbia allocates a higher percentage of its budget to capital investments—26.7%—compared to neighboring countries, while spending significantly less on pensions. To address social needs, the Republic Fund PIO announced a 7.5% pension increase for December and new agreements with private health institutions to provide discounts to pensioners.