Vladimir Vuckovic of the Serbian Fiscal Council hinted there is a possibility that the International Monetary Fund (IMF) might this year accept a slightly higher figure of Serbia's budget deficit, which was originally set at around RSD 120 billion, adding that the actual deficit could not be much higher than initially planned.

In an interview for Radio and Television of Serbia, Vuckovic stated that there is a risk that the deficit might overstep RSD 120 billion and it would be best for now to reduce the deficit to the planned figure, which is also the option all relevant bodies support.

If competent bodies conclude over the next few days, before the talks end, that this is barely feasible and requires great sacrifices and savings that cannot be made, there is a chance that the IMF might agree to a slightly higher budget deficit, but this cannot be a considerably higher figure, but under the given circumstances, we might overstep the RSD 120 million score, Vuckovic said.

He noted that the reasons for increasing the budget deficit comprise high inflation rate, lower budget revenues in the second half of the year and the new wave of the global economic crisis.

The IMF mission arrived in Belgrade on August 18 and will conduct talks with representatives of the Serbian government by August 31 with regard to the precautionary arrangement and the realisation of this year's budget, as well as the preparations for the 2012 budget.