The preparation of the rebalancing is underway and it is expected that during May, assumptions will be made that the proposal for changes to the state budget for 2020 will be discussed at the Government, the Ministry of Finance, headed by Darko Radunović, told "News".
From that department, they did not announce what can be expected on the revenue and expenditure side of the budget, the changes of which will be declared by the Parliament of Montenegro.
Representatives of the economic profession indicated in the previous days that the new measures of the Government should contain the rationalization of public spending, the reduction of the high salaries of public officials, should be directed towards additional assistance to closed businesses that are most affected by the pandemic, towards a greater release of obligations from local and state taxes...
Due to the impact of the coronavirus epidemic on the economy, the Government has estimated that the budget will lack about 508 million to cover all costs, of which 455 million will be provided from new loans, and about 53 million from donations.
This year's budget is projected at 2,64 billion euros, of which 2,054 billion euros were expected from the original revenues.
Due to the impact of the coronavirus epidemic on the economy, the Government has estimated that the budget will lack about 508 million to cover all costs, of which 455 million is planned to be provided through additional debt, and about 53 million from donations.
Figures
This year, the Ministry can hardly count on the planned 70 million euros from the leasing of the Airport of Montenegro (ACG) for 30 years, and the planned 15 million from the economic citizenship project is questionable.
It is certain that on the revenue side, corrections must be made to the income from all taxes and contributions, which will be lower compared to the plan.
The Minister of Finance recently stated that there will be no reduction in pensions, and he is not sure about salaries in the public sector. Radunović pointed out that the third quarter (July, August and September) is the most important for the budget, and that it would be good if we manage to organize the tourist season and that this activity generates "sustainable income".
On the expenditure side, the state had extraordinary expenditures to help citizens and the economy, especially through the second package of support measures, and it should also calculate the cost through the third package of measures, which is expected to be proposed in parallel with the rebalancing.
As part of the first package of measures for pensioners and the socially vulnerable, a one-time aid of one million euros was paid, and the state's reaction in March is dominantly the postponement of obligations for taxes and loans for up to 90 days, as well as for leases, advance payments for builders for projects of public interest...
They should also calculate the cost through the third package of measures, which is expected to be proposed in parallel with the rebalancing
The second package of measures costs the budget 75 million in gross effect, or 46 million net. As part of this support for citizens and the economy, the state subsidized the minimum wage of 222 euros for closed activities and tourism for April and May, and the employer was exempted from duties on that amount (142 euros). In addition, for threatened activities, the employee is paid a subsidy of 111 euros for April and May (50% of the minimum wage) and the employer is exempted from duty on that amount (71 euros). There are also subsidies for new employment for six months (70% of the minimum wage) or 255 euros per month including contributions, then wage subsidies for employees on paid leave due to children during the epidemic, as well as those in quarantine and isolation (70 percent of the minimum wage) for that period.
The unemployed received 50 euros from the state budget, who were registered with the Employment Office on March 31 and who are not beneficiaries of material security. Pensioners who receive a proportional pension also get that much.
It also includes additional financial support for agriculture and fishing, most earnings in the public sector were halved in two months, which is a saving of around half a million euros...
Minister Radunović recently stated that there will be no reduction in pensions, and he is not sure about salaries in the public sector.
He also pointed out that the third quarter (July, August and September) is the most important for the state budget, and that it would be good if we managed to organize the tourist season and to generate "sustainable income" from that activity. About 25 percent of Montenegrin gross domestic product is tourism. A special package of support measures for that branch of the economy is awaited.
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