Serbia Boosts Secret Service Budget to Nearly €89 Million for 2026 Amid Kosovo Tensions and Espionage Concerns

Significant Budget Increase for Serbian Secret Service

Serbia's Security Information Agency (BIA) is slated to receive a substantial budget increase for 2026, with official documents from Serbia's draft budget indicating an allocation of nearly 89 million euros (10.4 billion dinars). This represents the largest increase in recent years, significantly surpassing the budgets for 2024 and 2025. The move follows reported intelligence failures concerning Kosovo and a notable rise in arrests related to espionage activities.

The increased funding is intended to bolster the BIA's technological capabilities and strengthen its operational infrastructure, including efforts to infiltrate intelligence networks. This development occurs at a time when Kosovo's security institutions, particularly the Kosovo Intelligence Agency (KIA), have reportedly been successful in disrupting Serbian networks operating within its territory.

Context of Failures in Kosovo and Espionage Arrests

The decision to augment the secret service budget is directly linked to an increase in arrests for espionage in Kosovo over the past three years. These arrests have involved individuals suspected of gathering information from secret security institutions, with some implicated in broader espionage networks.

Despite the budget hike, media reports have highlighted internal challenges within the BIA, including allegations of corruption, misuse of resources, and a weakened operational network. Critics suggest that some BIA structures have been diverted to address domestic political issues, such as confrontations with protesters, thereby detracting from their primary intelligence operations abroad.

Transparency Concerns and Domestic Surveillance Allegations

A significant portion of the BIA's new funds is categorized under 'Confidential National Security Programs' within Serbian government documents. This classification means the budget allocation is not publicly explained, shared, or subject to transparent oversight, leading to speculation that the actual figures for espionage-related activities against Kosovo could be even higher than officially stated.

Furthermore, Serbian media have reported that the BIA has acquired advanced surveillance equipment, including technology for mass monitoring of digital communications and real-time tracking software. These tools have allegedly been used for domestic political purposes, such as intercepting internal police communications to identify officials leaking information to critical media outlets, and potentially for monitoring judges, prosecutors, and figures critical of the current regime.

Broader Budgetary Landscape

The increase in the secret service budget is part of Serbia's broader 2026 state budget proposal, which was adopted by the government. The overall budget focuses on raising living standards, developing infrastructure, and boosting investment, with a projected fiscal deficit of 3% of GDP. While the general budget outlines significant investments in sectors like health and education, the specific allocation for the BIA underscores a strategic priority placed on national security and intelligence operations.