Montenegro may have to shift €7–8 million from other 2026 budget appropriations to finance a planned €100 one-off payment to pensioners, as available uncommitted reserves are limited. The payment is planned for December and could require approximately €12–13 million in total, based on around 129,000 pension beneficiaries, according to an estimate by Institut Alternativa.
The calculation includes approximately 11,000 pensioners living abroad, although the government has not clarified whether they will be eligible for the payment. The estimate indicates that only around €5 million of Montenegro’s current budget reserve remains genuinely uncommitted. Most of the estimated cost would therefore have to be financed by reallocating spending from other budget lines. The Finance Ministry and the prime minister’s office had not publicly identified the source of financing.
Current reserve has already been largely allocated
Montenegro initially set aside €39.87 million for the current budget reserve in 2026. Approximately €21 million of that amount had already been earmarked for specific programmes, including €10.6 million for the Credit Guarantee Fund and €4 million for airline-promotion support.
At least a further €14 million had been allocated by July for other expenditures. These included approximately €5.4 million for Independence Day events, festivals and international activities, as well as €3.5 million for wildfire response. The pension payment could be financed without a supplementary budget if funds are transferred from other appropriations. Under that approach, the immediate fiscal issue would concern the allocation of existing expenditure rather than Montenegro’s overall capacity to finance the payment.
Tax revenue provides additional fiscal space
Montenegro has recorded stronger tax receipts during the year, with gross Tax Administration revenue approaching €1.2 billion in the first eight months, approximately €98 million above the level recorded a year earlier. At the same time, fiscal pressures are expected to increase ahead of 2027. The government is preparing its proposed Euro Model, which includes minimum net wages of €1,000, €1,250 and €1,400. Reduced fuel excise duties have also already reduced revenue from mineral-oil taxes.
Pension payment adds to upcoming fiscal pressures
The planned payment is relatively small compared with Montenegro’s overall budget and is not expected on its own to threaten fiscal stability. Its financing is nevertheless relevant as Montenegro strengthens public-finance controls ahead of EU accession and prepares a substantially larger investment programme.
If the payment reaches close to €13 million while only about €5 million remains uncommitted in the reserve, the government will need either higher-than-planned revenue or reductions in other spending. The immediate issue is therefore identifying the financing transparently while maintaining other existing budget commitments.
