Advancing Green Budget Tagging (GBT) in the Republic of Serbia

The Republic of Serbia is the first country in the Western Balkans to integrate Green Budget Tagging (GBT) into its budgetary process. As a public financial management tool, GBT enhances the alignment of public expenditure with climate and environmental objectives. As other European Union candidate countries embark on similar reforms to green their public finances, the Serbian experience provides valuable lessons.
This article examines the design and implementation of GBT in Serbia and identifies the key factors underpinning its successful rollout: an interministerial governance framework ensuring effective coordination among stakeholders; the adaptation of the EU Taxonomy to national circumstances; a phased implementation supported by sustained capacity building; and the integration of GBT into the country's public financial management system.