Finance Minister Novica Vuković stated that all compensatory measures from Montenegro’s Fiscal Strategy successfully covered the Pension Fund (PIO) gap, calling it “the best fiscal report Montenegro has had so far.” He responded to MP Miloš Konatar (URA), who cited the IMF’s warning about the need to limit public-sector wage growth and secure new revenue sources.
Vuković emphasized that there are no signs of recession or financial instability, noting a 9% post-pandemic recovery (2021–2023) and continued economic growth of 3–3.5%, among the highest in Europe. Growth is primarily driven by investment and private consumption, he said, adding that the government is managing the state budget responsibly.
Fiscal stability and credit rating
The minister highlighted that Montenegro’s credit rating increased for the first time in 11 years, while tax collection reached record levels — VAT revenue doubled compared to 2021, and corporate tax collection rose sharply as the grey economy declined.
According to Vuković, both the IMF and World Bank confirmed Montenegro’s strong recovery and projected stable medium-term growth of around 3.2%, with falling inflation and preserved macroeconomic stability.
Pension Fund and health financing
Vuković acknowledged limited cooperation with the Pension and Health Funds, stressing the need to redefine their roles to ensure more efficient spending. He confirmed that pensions are secure, financed directly from the state budget without additional borrowing, and noted that pension payments have increased through regular indexation.
He added that the government transferred €19 million above the approved budget to the PIO Fund last year and reiterated that the government views health spending as an investment, not a cost.
Public debt and fiscal outlook
Montenegro has repaid over €2.3 billion in old debts since 2021, with €1.6 billion remaining to be paid by the end of the government’s term. Public debt has dropped from 105% of GDP in 2020 to 60.8% in mid-2025, while net public debt stands at 53.6% of GDP.
Currently, the Ministry of Finance holds €450 million in liquid reserves, and Vuković underlined that all new borrowing has been strictly for debt repayment and capital investments, not for budget consumption.
