PROBLEM BUDŽETSKOG DEFICITA U SAVREMENIM EKONOMIJAMA

Abstract

A surplus of expenditure over revenues in the government budget is
called a budgetary deficit. Budgetary deficit, in itself, is not a negative thing. If
the budgetary deficit allows full employment and helps reaching economic policy
goals, there is full understanding for having a budgetary deficit. Budgetary
deficit of the Republic of Serbia has shown an increasing tendency in the period
2005-2016. After this period, budgetary deficit has started to decrease as a result of fiscal consolidation measures. Besides avoiding the negative consequences
of a budgetary deficit, Serbia has to maintain its budgetary deficit at a level below 3% of GDP, because that is a requirement for joining the European Union.
This also applies to countries which are already members of the EU, but they
have the right to short term deviations during the economic crisis. The European
Union uses these rules to maintain fiscal discipline. By comparing budgetary
deficits of the developed and developing countries, we can see a big difference
in levels of deficits. Developed countries have higher deficits in the first years of
economic recession, while the developing countries’ budgets show economic crisis
consequences in the subsequent years. The reasons for that lie in crisis overflow
channels, thanks to which the developed countries were the first to experience
crisis, and only later it affected the developing countries, too.