This is the first Human Development Paper for Serbia, focusing on inequality. The Agenda 2030 for Sustainable Development places a special emphasis on eradicating poverty worldwide while reducing inequality and exclusion, promoting peaceful, just and inclusive societies and leaving no one behind. The achievement of Sustainable Development Goals requires new approaches to how we understand and address inter-related challenges of poverty, inequality and exclusion. The paper analyses and sets a national baseline for SDG10 leading indicator 10.1.1 - Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population and the related target 10.1. – By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average.