November 16, 2019 - Mr Darko Radunović, Minister of Finance, and director-general of the Directorate for State Budget in the Ministry of Finance, Mr Bojan Paunović, presented the Proposal for the Montenegro Budget Law 2020 at the media conference.
“The objective of the economic policy of Montenegro’s Government is increasing the living standard and bringing GDP closer to the EU level”, said Mr Radunović.
“With the aim of bringing living standard closer to the European average, the Government is implementing measures of economic policy aimed at strengthening fiscal stability and increasing competitiveness of the economy”, said Mr Radunović.
He added that results of the economic policy achieved in the past period had shown that Montenegro’s fiscal position had been further consolidated: record economic growth rates, 15% increase in employment, and increase in salaries, implemented fiscal policy measures and creation of stable sources of financing through the most successful bond issue so far. Furthermore, conditions for increasing salaries of the employees with the lowest wages have been created, tax debt has been reduced by 30% compared with 2016. Wages, pensions and social benefits have been maintained at a regular level and capital projects aimed at infrastructure development through the greatest investment in Capital budget in the history of Montenegro.
In the past two years, more favorable borrowings enabled financing of payment of previous debts, which allowed the creation of a more favorable credit structure of public debt. The need for additional indebtedness has been considerably reduced as well as our country’s exposure to possible unfavorable economic trends in the international environment.
Measures of fiscal adjustment enabled the following: over €20 million increase in budget revenues, reduction in budget deficit with current expenditure surplus, capital budget funds for the implementation of new infrastructure projects.
“Strong economic growth, increase in the number of employed people, strengthened fiscal stability and maintained a level of competitiveness of Montenegro’s economy create the position in which our country would respond to the global economic slowdown”, said Minister.
Mr Radunović emphasized that further consolidation of public finances as proposed in the projected 2020 Budget. He highlighted additional support that this Budget provided.
“Proposal budget also creates conditions for the affirmation of the airports and the sustainability of the national air carrier”, said Mr Radunović.
The development component of the budget creates conditions for the continuation of a strong investment scheme.
This budget will be used primarily for development.
Text by CDM on November 16, 2019, read more here.
To read more about business in Montenegro, follow TMN's dedicated page.