In a revised 2012 budget that was adopted by the Serbian parliament on Tuesday (September 25th), the country's tax revenue will increase to 7.2 billion euros, up 3.3 percent from the previous budget, while the deficit will drop to 1.7 billion euros, or 6.2 percent of the country's GDP.
Along with the budget approval, MPs also voted to increase the country's VAT to 20 percent, up from the previous 18 percent, which will go into effect on Monday.
The fiscal actions come a little over a week after a delegation from the IMF was in Belgrade to discuss opening a new loan plan for the country.
In February, the Fund suspended Serbia's $1.3-billion precautionary loan because the country was slipping on the required deficit and debt targets.
After this month's visit, the IMF said it welcomed Serbia's "intention to maintain the inflation-targeting regime needed for macro-economic stability," and called for "corrective measures" to bolster the central bank's autonomy.
Source and full story: Turkish Weekly, 29 Sept 2012