According to the budget proposal for the next year, total social benefits will be increased by 45 million euros, 35 million is intended for increasing pensions, 67 million euros for increasing salaries in the public sector, 60 million more for the Health Fund, seven million for the payment of benefits for newborns, a significant increase in money for agriculture, education, science, sports, i.e. for almost all areas...
This was announced by the Minister of Finance, Aleksandar Damjanović, at a press conference after the Government session where the budget proposal for the next year is being considered, which is worth 2,8 billion euros, or 165 million more than this year. Of that amount, the amount of 785 million euros is earmarked for the payment of pensions and social benefits, which is significantly more than ever before.
"This government cares about the social standard of citizens, which is why pensions and social benefits will be increased next year, as well as wages in the part of the public sector where there was no increase for years. Pensioners with minimum and below-average incomes, as well as beneficiaries of proportional pensions, will receive in December the so-called 13th pension," said Damjanović.
He stated that the missing funds in the budget will amount to 705 million euros, as well as that the debt limit will amount to 600 million, while the rest will be provided from deposits.
Of this amount, 335 million euros will be used to repay old debts, as well as 115 million for interest, so that out of a possible 600 million debts, 450 million will go to these old obligations.
Damjanović said that this amount of interest has become unsustainable, as well as that in 2025, 500 million old debts will be due, and in 2027, 750 million, and that we should already think about creating the conditions for returning those obligations.
"We need large investments in energy, transport, tourism, incentives for economic development... in order to have economic growth that would increase state revenues and enable the repayment of these debts. Although this government inherited many problems, we are creating preconditions for long-term development." , said Damjanović.
He said that they planned the income for the next year conservatively, even though it could be higher, but that they did not want to make optimistic plans like some of their predecessors, which later do not come true and cause problems.
Damjanović said that the capital budget is 35 million higher than this year's if the allocation for the highway is excluded, and that 294 capital projects covering all municipalities will be financed. The minister said that money from the economic citizenship project, which was outside the state treasury system until now, is an integral part of the budget, while on the revenue side there will be measures to suppress the gray economy and the new tax scope.
"More money has been earmarked for healthcare, specifically for 65 million more to the Healthcare Fund. And this is the first government that has completely canceled the debt of this fund," said Damjanović.
The minister said that the repayment of the debt will be accelerated on the basis of compensation to citizens whose property was unjustly confiscated in the past decades and whose proceedings have been legally terminated.
"Previous governments predicted that this injustice would be paid with 2,5 million per year, which would mean that it would be paid in 33 years. Unfortunately, many citizens did not even wait for the injustice against them to be paid. We are now increasing this payment to ten million, and in the coming years, depending on GDP growth, we plan to double that amount so that this category of citizens would be paid in three to four years, not 33. This would allow this government to correct a historical injustice," said Damjanović.
He stated that the budget for the next year will not include revenue from the concession of the Airport, but that he expects a final decision to be made on the matter.
When asked that the state now borrows at a much higher interest rate than previously five to seven percent, Damjanović stated that in the case of the disputed debt from December 2020, the interest rate was 2,8 percent.
"Look at how much inflation was then, and now it is 16 percent. We borrow at rates that are significantly lower than inflation and which are realistically lower than the interest from that debt," said Damjanović.
Inflation in December 2020 was negative and amounted to minus 0,9 percent, while Euribor was also negative, which now stands at 2,3 percent.
The minister stated that next year there will be no extraordinary adjustment of excise taxes, but according to the calendar, and that excise taxes on sweeteners remain to be considered.
"Due to the reduction of excise duty on fuel, the state was left without 40 million euros, but I prefer to say that with that much we helped the citizens and the economy. We will gradually return the amount of excise duty if fuel prices decrease on international exchanges. Due to the closure of the free zone of the Port of Bar and the measure against cigarette smuggling have increased state revenues from excise taxes on tobacco products by 30 million euros," said Damjanović.
Prime Minister Dritan Abazović said at the session that the budget for 2023 will be "the largest capital budget that Montenegro has ever had".
"For the first time, salary increases are foreseen in the public administration, in education and in the Ministry of Internal Affairs, i.e. in the police. For the first time, a child allowance is being introduced for all children in Montenegro, and for the first time funds are provided for newborns," said Abazović.
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