The Ministry of Finance in Montenegro has proposed technical amendments to this year’s budget law, which do not affect the overall budget result, Finance Minister Novica Vuković said. The changes mainly involve adjustments due to the implementation of a new regulation on the organization and functioning of the state administration. The total budget increased by only seven euros due to opening new budget positions for better expense tracking.
Vuković specified that the budget revenues of €4.03 billion are allocated as follows: €1.5 billion for the current budget, €1.3 billion for funds, €280 million for capital investments, €43 million for budget reserves, and €890 million for financing transactions. The adjustments involved a slight increase in the current budget by €409,000, balanced by a corresponding reduction in the current reserve, while other budget parts remained unchanged. Therefore, the projected revenues, total expenses, and deficit remain essentially the same.
Opposition and parliamentary representatives expressed concerns about key economic issues beyond the technical budget changes. Miloš Konatar from the URA party highlighted the historic maximum deficit of the Pension and Disability Insurance Fund (PIO) at €232 million, warning that citizens will bear the cost through various taxes. He also pointed to a weaker tourist season partly caused by increased VAT on tourism services and rising prices. Konatar urged transparency and questioned whether budget revenues meet planned targets, emphasizing the need to finance the PIO deficit.
Tonći Janović from the Europe Now movement disagreed with the negative economic outlook, noting that the technical budget rebalancing includes funding for the Budva bypass construction, which will benefit tourism and local economy.
Nikola Milović from the ruling DPS party criticized last year’s fiscal strategy as unrealistic and linked it to government reshuffling. He pointed out problems like high prices, traffic congestion, and poor management in the energy sector, warning that without corrective measures, Montenegro risks becoming a state in name only.
Boris Mugoša from the Social Democrats stressed that Montenegro has long neglected real economic development, reducing support for competitiveness and following a consumption-driven economic model. He expressed concern over the lowered GDP growth forecast from 4.8% to 3.5% without corresponding adjustments in revenue projections. Mugoša also noted a decline in tourist overnight stays compared to last year.
Mirsad Nurković from the Bosniak Party highlighted issues with airports, stating that Montenegro has fallen behind regional developments. He suggested considering airport concessions if public management options are limited. Nurković expressed cautious optimism about the fiscal strategy’s design but questioned its implementation.
Overall, while the budget amendments are technical and neutral regarding fiscal balance, several MPs emphasized underlying economic challenges, including the pension fund deficit, tourism performance, infrastructure projects, and the need for realistic fiscal planning.
