Serbia's Bold Budget: Economic Growth Amidst Political Turmoil

Serbia's parliament approved a 2025 budget, allowing for salary increases amid a planned GDP growth of 4.2% and deficit of 3%. The budget faced rapid approval due to a parliamentary brawl and ongoing protests. It includes raises for teachers and pensions amid allegations of corruption and a recent disaster.

Serbia's parliament swiftly adopted the 2025 budget on Wednesday, enabling significant salary increases despite enduring a 3% GDP deficit. The approval occurred without debate following a tumultuous session marred by a parliamentary brawl.

The budget outlines substantial increments with an 11% rise in teachers' salaries and a 10.9% hike in state pensions by December, addressing public discontent that resulted in mass teacher protests last month.

Amid public scrutiny, the government, led by Prime Minister Milos Vucevic, defended its fiscal plan while grappling with accusations related to the recent railway station disaster. An IMF agreement fortifies Serbia's economic reforms, promising easier access to further financial resources.

(With inputs from agencies.)