The development model of fiscal policy in countries in transition through a review of Serbia

The paper points to recent empirical analysis that favored the link growth and fiscal policy in countries in transition. The eternal dilemma of macroeconomic stability and / or growth, this work is interpreted through the role of fiscal policy in achieving macroeconomic objectives of the Serbian economy. The analysis shows that high fiscal deficits and rapidly increasing debt increases the risk of the country, increase the cost of borrowing, reduce capital inflows and growth. The tax system in Serbia is generally supportive of the work and investment, while the structure of public spending is not a function of growth - in public spending dominates the current consumption while public investments are low.