In this paper we analyze public debt sustainability in Serbia between 2004Q3 and 2014Q3. The results of our analysis are: i) public debt to GDP ratio is on unsustainable path, according to the results of unit root tests; ii) the response of primary fiscal balance to public debt accumulation is insufficient to mean revert the upward trend in government debt; iii) the government budget constraint has deteriorated more since the beginning of the Great Recession.