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Montenegro

28. 07. 2022. 00:00   >>  16:03

DAMJANOVIC ANNOUNCED

270 million euros missing this year, 600 million euros next year

The Ministry of Finance estimated that the missing funds for this year will amount to 270 million euros, and for the next 600 million, announced the relevant minister Aleksandar Damjanovic, and announced the adoption of a rebalance in September.

Today, at the Government session, explaining the proposal for macroeconomic and fiscal policy guidelines for the period up to 2025, he said that the rebalancing was announced for September and that the new budget is being worked on extensively.

 

"Given that the budget revenues that were announced during this year cannot be realized, because the previous administration did not create legal conditions but only announced them for the sake of order, it is clear that the projected budget cannot be lower than 7.6 percent," Damjanovic said.

 

He added that the rebalancing of the budget has been completed in a technical sense.

 

"The only reason why it is not at the end of July is to wait for the effects of the tourist season in August in order to precisely define the proposal to amend the law on the budget," explained Damjanovic.

 

He stated that the inflation in June was 13 percent and that it was inflating incomes and in one way additionally taxing the entire economy and all citizens.

 

"Let’s not to play games, promise the impossible, lie to the people about an average salary of one thousand euros and a pension of 500 euros, let’s be realistic, give as much as we can and be the first to set an example through the state administration that it is necessary to tighten a belt. At some point, the question will be the price of the debt and how much we will be able to borrow," emphasized Damjanovic.

 

He announced that even the predicted growth of the economy will not cause the budget deficit to fall below four percent in the next three years.

 

"This means that Montenegro must find new measures of fiscal consolidation and that somewhere together we all actively think in that direction. What is clear is that the missing funds at the moment are at least 150 million euros, due to the newly constituted obligations," said Damjanovic.

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