# Serbian fiscal policy and economic debate > Live situation record from CLSTR: https://clstr.news/situations/serbian-fiscal-policy-and-economic-debate > Updated: 2026-08-27T10:52:07.000Z. Sources: 3. Developments: 2. Political debate has intensified in Serbia regarding the country’s economic model and fiscal sustainability. Slobodan Cvejić, deputy president of the Serbia Centre (SRCE) party, has criticized the government for an unsustainable model that allegedly favors foreign investors through subsidies while neglecting domestic small and medium-sized enterprises. Cvejić also highlighted rising public debt and questioned the timing of pension increases and large-scale projects, such as the Expo complex, suggesting they may serve political purposes. As the discussion shifted toward the national budget deficit, Cvejić warned that expenditures are outstripping revenue growth, which he characterized as a “path toward state bankruptcy.” He further suggested that planned spending in the latter half of the year might act as pre-election fiscal stimulus. In response, Finance Minister Siniša Mali defended the government’s position, dismissing claims of a record deficit as a “statistical misunderstanding.” Mali stated that the deficit, at 3.5% of GDP, is driven by record capital investments in infrastructure, hospitals, and schools. He maintained that Serbia’s public debt remains below 45% of GDP, which he noted is significantly lower than the European Union average. ## Timeline ### 2026-08-27: Serbia budget deficit sparks debate over fiscal sustainability Serbian officials are debating the country's budget deficit, with critics warning of unsustainable debt and ministers attributing the deficit to record-high infrastructure investments. 3 sources. https://clstr.news/cluster/serbia-budget-deficit-sparks-debate-over-fiscal-sustainability ### 2026-07-31: Serbia's economic model criticised by SRCE deputy Slobodan Cvejić SRCE deputy Slobodan Cvejić says Serbia's economic model favours foreign investors, ignores SMEs, raises debt by €25‑26 bn since 2012, and times pension hikes before elections. 5 sources. https://clstr.news/cluster/serbias-economic-model-criticised-by-srce-deputy-slobodan-cveji --- Cite as: Serbian fiscal policy and economic debate. CLSTR, https://clstr.news/situations/serbian-fiscal-policy-and-economic-debate