Serbia announces major support package for three million citizens

All Serbian citizens eligible for the newly announced state financial assistance will receive the payments simultaneously at the end of September or the beginning of October, Serbia's First Deputy Prime Minister and Finance Minister Siniša Mali announced.

The support package, unveiled by Serbian President Aleksandar Vučić, is worth nearly €600 million and will benefit around three million people, CE Report informs via the Ministry of Finance of Serbia's official website.

“Through these measures, we are fulfilling our promises and helping those who need support the most, with the aim of assisting citizens ahead of the higher living costs that come with autumn and winter,” Mali said in an interview with Serbia's public broadcaster RTS.

Mali said that while infrastructure development is making Serbia more attractive, the measures aimed at citizens demonstrate the government's commitment to improving people's lives.

“What is important is that we have once again shown genuine care for people. We promised we would find a way to help those with lower incomes, and we are now delivering on that promise,” he said.

The finance minister also announced that lower medicine prices will take effect from 1 August, adding that, together with the direct cash assistance, the measure would generate significant savings for many households.

He thanked Serbia's pensioners for bearing much of the burden during recent crises while continuing to support the country's reform agenda.

“In recent years, wages have grown faster than pensions. Through this package, we want to compensate pensioners for that,” Mali said.

Pension payments

Mali said around 1.663 million pensioners will receive one-off payments at the end of September or beginning of October:

35,000 dinars for pensioners receiving the minimum pension of up to 31,092 dinars;
27,500 dinars for those receiving pensions of up to 56,848 dinars;
20,000 dinars for all other pensioners.

“This is substantial financial assistance for our oldest citizens. We listened to public opinion, and it makes sense to provide the greatest support to those with the lowest pensions,” he said.

He added that the measures had also been discussed with the International Monetary Fund (IMF) and noted that previous aid packages had been criticized because pensioners with low and high pensions received equal payments. This time, the government decided to target those with the lowest pensions more directly.

Support for vulnerable groups

According to Mali, the package also covers:

Around 150,000 social assistance recipients;
Families receiving child benefits for approximately 160,000 children in 82,000 households;
Recipients of veterans' allowances.

These groups will receive 25,000 dinars each at the same time as pensioners, while around 91,000 war veterans will receive 10,000 dinars each.

Mali said this part of the package is worth between €70 million and €80 million.

Tourism vouchers and energy support

The government will also issue 30,000 domestic tourism vouchers, each worth 10,000 dinars, for pensioners whose pensions do not exceed 80,000 dinars.

In addition, the government will extend the validity of the regulation on energy-vulnerable consumers, allowing social assistance recipients to continue receiving electricity and gas discounts ranging from 20% to 40%, while pensioners and war veterans will continue receiving an additional 1,000-dinar discount on electricity bills.

Medicine price cuts

Mali described lower medicine prices as one of the package's most significant measures.

He said the government had reached an agreement with pharmaceutical companies under which the state would assume more than €100 million annually in costs to reduce retail medicine prices.

As an example, he cited the osteoporosis medication Movimia, whose price will fall from around 6,400 dinars to approximately 1,800 dinars.

“These are enormous savings for patients who rely on regular therapies. We are also permanently expanding the list of reimbursed medicines, including blood-thinning drugs. We carefully targeted those who need assistance the most,” Mali said.

Strong public finances

Mali said Serbia currently has 560 billion dinars (around €5 billion) in state reserves, enabling it to finance the package thanks to stronger-than-expected budget revenues.

He noted that Serbia's economy grew by 3.2% in the first quarter, making it the fourth-fastest growing economy in Europe, while public debt stands at 43.7% of GDP, compared with an average of 88–89% across the eurozone.

“Citizens should not worry. We have spent years strengthening public finances. They are stable, as confirmed by the IMF and by the fact that Serbia is the only country in the region with an investment-grade credit rating,” he said.

Mali recalled that pensions increased by 12.2% on 1 December last year, following another double-digit increase the previous year, both exceeding the inflation rate.

“We are constantly working to improve citizens' living standards and ensure they benefit from Serbia's growth and development,” he said.

Infrastructure and Expo 2027

Mali also highlighted the recent opening of the completed section of the Morava Corridor, calling it a decades-long dream for residents in central Serbia.

He said the 112-kilometre motorway linking Corridors X and XI will boost economic development, attract new factories, create jobs and contribute to higher wages and pensions. The remaining 12 kilometres are expected to be completed by the end of the year.

He added that work is continuing on several other major infrastructure projects, including the Danube Highway, the Smile of Vojvodina motorway, the Fruška Gora Corridor, and the Kuzmin–Sremska Rača route.

“We have not stopped a single investment project. Work is continuing everywhere,” Mali said.

Finally, he announced that 140 countries and international organizations have confirmed participation in Expo 2027, which Serbia will host next year.

“It will be the most successful specialized exhibition ever held, the biggest event in the world next year, and the largest event in Serbia's history. It represents a tremendous development opportunity and a foundation for even faster growth in 2028,” Mali concluded.

Photo Ministry of Finance of Serbia