Contribution for the reform of the public enterprise of the Roads Of Serbia

  • Srećko Babić PE "Roads of Serbia"
Keywords: reform of PE Roads of Serbia, extractive institutions, moral hazard


Available funds for road maintenance in Serbia continue to fall. In the last 5 years (2012-2016) investments in maintaining the road network more than two times have decreased compared to the period 2007-2009.god. In the last 5 years the method of financing the maintenance of the road network in Serbia are subsidies by Serbian government. Subsidies directly generate the appearance of moral hazard by the management, because they invest less effort in making good management decisions and more "good relationship" with the line ministry. The moral hazard is consequence that every business decision covered by the state or taxpayers. This work has shown that it is possible to separate the funds for the maintenance of highways of funds for maintenance of other roads through the reorganization of existing PERS and with the opening of a new company for maintenance of highways. This reform has aim to: a) maintenance of highways, b) all of the improvements in the management of traffic on highways in real time and v) technological developments of pay toll collection financed exclusively from toll revenues. Financing road maintenance the first B, second A and second B row without loans and subsidies would begin by 2018 and with to 26% of revenue in the excise duty on fuel. Both of these ways of financing highways (roads A first order) of pay toll revenue and other roads from excise taxes on fuel minimizes the impact of extractive political and economic institutions and the emergence of moral hazard of the management. Thus, there is a responsibility for bad business decisions and awards for good business decisions.


Download data is not yet available.
How to Cite
Babić, S. (2019). Contribution for the reform of the public enterprise of the Roads Of Serbia. Journal of Road and Traffic Engineering, 63(2), 55-61. Retrieved from