Serbian President Aleksandar Vučić announces a different redistribution of the budget - more money for private colleges. Experts point out that this is a political decision without any economic sense, and that the government will do everything, including giving money to private individuals - just to divert attention from student requests, he writes Dunja Marić for the New Economy.
In October 2024, when the new academic year began, a total of 174.049 students were enrolled in studies at state universities throughout Serbia (not counting the University of Defense and the Police and Criminalistics University). Today, a few months later, almost all state faculties are blocked. The Faculty of Dramatic Arts, which belongs to the University of Arts, was the first to enter the blockade at the end of November. Then, one by one, other faculties joined.
One of the student demands was an increase in budget allocations for higher education. It is also the only request that the state fulfilled.
How much does the state spend on higher education?
Allocations from the budget for higher education have so far amounted to around 540 million euros. The students asked for an increase of 20 percent, or about 108 million euros. According to the analysis of the Center for Higher Economic Studies (CEVES), such an increase would not only be symbolic, but would enable significant improvements in the higher education system. In particular, this increase would enable the employment of additional teaching staff, which would solve the unfavorable ratio of the number of professors and students, increase spending on key materials and equipment for education, such as laboratory instruments, libraries and technical equipment for practical work, and the renewal and modernization of infrastructure - from buildings to digital tools.
"An increase of 20 percent would effectively double expenditures for improving the quality of education, as most of the current budget (about 80 percent) is spent on teaching staff salaries," the analysis states.
A few months later, the authorities fulfilled this request. Namely, at the session in February, the Government adopted a decision providing funds in the amount of 12,01 billion dinars (about 102,4 million euros) for higher education and student standards.
"As we promised, through the balance sheet, we secured an additional 12,01 billion dinars for higher education and student standards. With this, the total allocations from the budget for higher education and student standards for the year 2025 will amount to 72,06 billion dinars. In this way, the financial conditions were created for the reduction of tuition fees for students by 50 percent, which was exactly one of the demands of the student plenum," said Finance Minister Siniša Mali at the time.
Then, about a month later, from the budget reserve, more precisely from the intervention funds of the Ministry of Finance, precisely those 12,01 billion dinars were set aside, in order to fulfill the fourth request of the students.
Funds in the amount of almost 590,6 million dinars are intended to support the work of the University in Novi Sad, then 120 million dinars to support the work of higher education institutions, six billion for the development of higher education and 432 million for student housing in Serbia. The funds for higher education are intended for the modernization of the infrastructure of higher education institutions in the total amount of 112,7 million dinars.
A total of 653 million dinars was allocated from the reserve to support the work of higher education institutions in Serbia, 130 million dinars to support the realization of doctoral studies, 30 million dinars for the development of higher education, while three million dinars were allocated to support the realization of master's studies at universities. 66 million dinars were allocated for the system of student-standard institutions, and 443 million dinars for individual assistance to students. Also, a total of 140 million dinars has been earmarked for the creation of preconditions for supporting the openness of higher education.
Some savings were made.
However, in the midst of these new expenditures, the state found a way to "save" - and that on professors' salaries.
Namely, at the end of March, university professors received only 12,5 percent of their February salary, and that is because the Government, then in resignation, passed a decree that changes the way in which the salaries of professors and associates at all higher education institutions are calculated. By that decree, the time allotted for carrying out scientific and research work was reduced, and the number of working hours intended for teaching was increased.
In the future, scientific work in the calculation of earnings will make 12,5, and teaching work 87,5 percent of salary.
More money for private colleges
After the professors were "punished", it seems that the turn of the entire universities has also arrived. Namely, the President of Serbia, Aleksandar Vučić, said that he "wants to strengthen the private sector in Serbia" and that more students from private faculties have the right to budget funding.
"Another important thing that I will propose - both as a citizen and as the president, I have a legislative initiative, I will ask, I will see if the Government will agree - if not, I will also go against the Government in the National Assembly, and I will see if I can secure a majority in the National Assembly of the Republic of Serbia, for the adoption of a law that would distribute money to faculties differently," said Vučić.
He also explained why he wants more students from private colleges to be educated at the expense of the state.
"Private faculties have proven to be much more stable, much more serious than faculties and universities that want to provide knowledge and education to people. Private property has proven to be property that manages capacities much better than state property. In state property, as well as in social property, everyone thinks they have the right to use all rights, but they have no obligations, they treat the state as the last hole in the pipe," said Vučić.
"With this, we will break the monopoly of state colleges, they will never be able to blackmail anyone again. If they want to survive, they will have to fight in the market in an incomparably more serious way, and our children will be able to study," he added.
Everything except fulfilling the requirements
The dean of the Faculty of Philosophy in Niš, Natalija Jovanović, considers this announcement a form of "intimidation, punishment and pressure".
"This is just the continuation of a policy that goes against the country and the people. I would just like to remind the president about the private faculties that are also under blockade," says Jovanović for New Economy.
She says that such decisions should not be made overnight, but at the same time - she is not surprised by that.
"This is a war that one man, for reasons known only to him, has declared on state universities and serious education. He will do everything to divert attention from such simple student demands. At the same time, this announcement cancels the alleged fulfillment of the fourth demand, although it was fulfilled only on paper, not in practice. This only continues the politics of force and madness," says Jovanović.
Economist Saša Đogović believes that this is purely a political decision due to the "disobedience" of state universities.
"In this way, you actually enter into a fight with professors, rectors, deans... I don't see any economic logic in this, especially in this socio-political crisis, except further entry into the spiral of repression", says Đogović.
He points out that since the beginning of the year there have been negative implications for economic flows - lower industrial production, exports, fewer foreign direct investments, weaker results in retail sales, and it is unlikely that economic growth will amount to the projected 4,2 percent. However, it is not the fault of the students, as the government tries to present.
"Students are not to blame, they are targeting the culprit and the cause of the crisis, which are institutions that are not functioning. The longer the crisis lasts, the higher the price of getting out of it will be. Students are targeted as culprits for political reasons, and they make a big sacrifice, especially if they lose a year. No one is on the street on a whim, and that was best seen on March 15. The government must get out of its bubble, its parallel reality, if they want to stop the crisis in which our society is", concludes Đogović.
By the way, representatives of the government have repeatedly repeated how student protests and blockades "destroy the economy", but in practice, things are a little different, which the New Economy has already written about.
