In creating the budget proposal for the next year, the government deviated from the fiscal strategy and the guidelines of the marco-economic policy, the public debt increased by 600 million euros in two years, there is no increase in the standard of living of citizens and the minimum wage, and on an annual level there is a lack of about 500 million euros to cover of all costs.
These are the key assessments of the opposition, which were heard today in the parliament during the debate on the draft law on the budget for the next year.
The Minister of Finance, Darko Radunović, acknowledged the deviations from the strategic documents and announced their correction by the end of March next year, claims that the public debt has increased solely due to capital projects, which the executive authorities have announced, and promises to increase the minimum wage and reduce wage contributions as soon as create the conditions that will enable the public deficit and debt not to increase.
Independent MP Aleksandar Damjanović said that the budget proposal does not match the plans from the fiscal strategy and macroeconomic policy guidelines.
He explained that GDP is half a million euros higher in the budget proposal compared to the fiscal strategy, while spending limits are increased by 130 million euros in the proposal compared to the macroeconomic policy guidelines.
"There is no explanation of the revenue items of the budget. How can we believe that you planned well, when the final account showed that you missed by about 50 million euros? Are we going to question the arrangement with the World Bank after all that is happening in the banking sector? Deposits are not from the surplus of income over expenditures, taxation and breaking up the gray economy, these are deposits from this year's debt. We are not changing the model of economic policy and we are constantly missing about 500 million euros," said Damjanović.
SDP MP Raško Konjević pointed out that any successful policy has the goal of increasing the quality of life of citizens, and that citizens should judge for themselves whether they feel the benefits of the policy implemented by the government.
"The public debt at the beginning of the mandate of this Government was 2,6 billion euros, and at the end of this year it is 3,2 billion euros. Expenditures are 250 million more than projected by the fiscal strategy. The average salary was 501 euros, and now is 511 euros. There is no nominal salary increase through this budget. We have the lowest minimum wage in the region, even Kosovo has a higher one and it is 250 euros. The cost of living in Montenegro is not cheaper compared to European countries. The salary fund is 50 million more euros, and salaries have not been increased," Konjević said.
Minister Radunović explained that the strategic documents must be updated by the end of the first quarter of next year, because a lot of changes have been made.
"We did not say that we will not increase the debt, but that it will increase while the construction of the highway continues. In 2017, 187 million euros were spent on the highway, and 67 million through the Directorate for Public Works and the Directorate for Roads. In this year, 207 were spent on the highway million euros, and for two directorates 81 million euros. All of that is a total of 550 million euros. We announced in the projections an increase in the public debt due to investments. The budget was made conservatively, and we did not plan to increase salaries, which does not mean that there will not be any," he said. Radunović.
The minister explained that when it comes to the correction of the minimum wage and the reduction of contributions to wages, this will happen, but while the public debt and deficit are growing, this is not possible.
"Experience from the region has shown that when this was done, it was always at the expense of the budget until the balance was established, so we have to be extremely careful," said Radunović.
The budget for next year is projected at 2,38 billion and, according to the minister, it is the result of the continuation of fiscal consolidation measures whose ultimate goal is to reduce the deficit and public debt. The minister explained that the budget is conservatively planned, that it provides large allocations for capital projects, and regular payment of salaries and pensions and social benefits.
SD MP Boris Mugoša emphasized the importance of allocating larger sums from the budget for health and education, while DPS MPs pointed out that it is important that the budget is conservative and that there are large investments in infrastructure projects.
Minister of Health Kenan Hrapović promised stability in the financing of health care and its availability to everyone, and Minister of Education Damir Šehović pointed out that the budget guarantees regular salaries and pensions, as well as the stability and smooth functioning of all spending units, and the Government's household attitude towards money, because planned 200 million current budget surplus.
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