Serbia's budget deficit in the first quarter of 2012 reached RSD 48.56 billion, of which the revenues were RSD 161.9 billion, and expenditures RSD 210.5 billion, the Ministry of Finance released.

According to the agreement with the IMF, the budget deficit at the end of the first quarter should have been RSD 26 billion.

A deficit of RSD 11.3 billion was achieved in March, when revenues were RSD 75.7 billion and expenditures RSD 64.3 billion.

According to the release, considerably greater revenues in March compared to February are the consequence of several factors.

One part of revenues was practically transferred from February, taking into account bad weather conditions and electricity cuts during that month when a significant part of the economy suspended activities or performed them in extremely difficult conditions.

This mostly refers to import taxes, that is customs duties and VAT on imported goods and nontaxable income.

Another reason for the revenue increase is the companies' payment of profit tax upon the final account for 2011.

The revenue from taxes was RSD 8.3 billion, taking into account that one part of excise duties for March were paid in April, and will be registered as part of April revenues.

High collection of nontaxable revenues is largely the result of payment of part of the profit of Telekom Srbija in the amount of RSD 3 bilion.

Budget expenditures in March 2012 reached RSD 75.7 billion.

The biggest items are the payment of salaries and transfers to organizations of compulsory social insurance - the Fund for Pension and Disability Insurance (PIO), Serbian Health Insurance Office (RZZO), and National Employment Service, the largest amount is allocated for pensions. In March, the biggest deviation was marked with the payment of interest rates and subsidies.

As for interest rates, debt to international institutions is paid in March and April, so payment of interest rates is thus higher compared to other months.

The growth of subsidies compared to February was the result of the beginning of payment of agricultural subsidies and those of the public enterprise Putevi Srbije (The Roads of Serbia).

The remaining categories are performed at a usual pace, with a mild growth of capital expenditures.