Podgorica, Montenegro’s capital, is preparing a €183.3 million budget for 2027, up 11.6% from the previous year. The proposal includes €94.3 million for capital expenditure, while higher transfers to municipal companies and wage costs would add pressure to spending. Finance Secretary Balša Špadijer disclosed the budget figures.
The proposed budget is €19.1 million above the €164.2 million allocated for 2026. Capital expenditure is projected at approximately 51.5% of the proposed total, with individual projects still subject to procurement and implementation.
Capital programme centres on wastewater infrastructure
The largest identified investment is €22.89 million for Podgorica’s wastewater collection and treatment programme. The project has implications for environmental compliance, urban development and future infrastructure capacity.
Other planned investments include completing several major city roads, reconstructing public squares, building the western bypass, improving sports facilities and developing additional municipal infrastructure. The programme could create potential contracts for construction and engineering companies, but allocations are not awarded tenders or completed investments.
Delivery will depend on procurement, permits, implementation capacity and actual revenue collection. The economic impact of the investment plan will depend on how much of the allocated capital spending becomes completed infrastructure.
Transfers and wages increase spending pressure
Transfers to municipal companies, which provide services including public transport and waste collection, are projected to rise by €6.14 million to €27.4 million, an annual increase of almost 29%. The additional funding is intended to support those services, maintenance of public areas, municipal infrastructure and other activities.
Špadijer linked part of the increase to the Government of Montenegro’s proposed Euro Model wage reforms, which could raise employment costs across municipal enterprises. The reforms have not been enacted, but Podgorica is factoring their expected financial effects into its budget planning.
The city has budgeted €24.73 million for gross salaries and employer contributions, €4.36 million, or 21.4%, more than in 2026. It also plans €1.81 million in subsidies for agricultural production, entrepreneurship, tourism and other development initiatives.
Approximately €650,000 has been reserved for potential expenditure related to local elections scheduled for June 13, 2027. Podgorica must also manage spending related to earlier liabilities and legal proceedings as it seeks to maintain municipal services, absorb wage pressures and deliver capital projects without undermining its fiscal position.
