Montenegro’s State Audit Institution (DRI) reported that in 2024, key fiscal responsibility criteria were breached, particularly regarding public spending limits, deficit planning, and public debt growth.
The DRI review found that the 2024 Budget Law and its amendments did not comply with legally mandated spending limits. The government also failed to submit a fiscal strategy as required by law. The proposed 2024–2027 fiscal strategy indicated a cash deficit above 3% of GDP, continuation of a primary deficit through 2027, and a projected public debt increase of 21.81% by 2027, with GDP growth relying heavily on debt-financed public spending. Fiscal policy guidelines for 2024–2027 were also not adopted.
Analysis of fiscal indicators showed that only one out of four static planning indicators was met, while dynamic indicators were largely unfulfilled. At the local level, 12 municipalities failed to meet fiscal responsibility criteria during planning, and 13 during execution.
Overall, the DRI concluded that Montenegro deviated significantly from fiscal rules in 2024, mainly due to the absence of a primary fiscal strategy and excessive reliance on borrowing, despite some budget execution targets being achieved.
