At today's session, the Government approved the Bill on Amendments to the Law on the Budget of Montenegro for 2023.
The planned changes, as announced by the Government, are brought about due to technical harmonization with the new Regulation on the organization and mode of operation of the state administration, the planning of funds with the aim of realizing the EU support package for overcoming the energy crisis and providing the missing funds for the financing of certain budget obligations until the end of the current year , as well as due to the increase in receipts.
It also says that the original budget revenues are 2,4 billion euros and that they are 275,3 million more than those planned by the Budget Law.
"Collection of budget revenue in the period so far this year is significantly higher compared to the same period of the previous year. A significant part of the increase in budget revenue refers to one-time inflows that are not related to new fiscal policy measures or significant structural reforms that improve the structure of the economy and create new value ".
The Government also states that it is estimated that the share of non-recurring income will amount to over 180 million euros, the most significant of which relate to collected income based on the hedging arrangement concluded in 2021, in order to protect against the currency risk of a loan concluded in dollars for the purpose of building an auto- road "Bar-Boljare", in the amount of 60 million euros, accumulated revenues from the previous period based on the implementation of the "Economic Citizenship" program, which are planned in 2023 in the amount of 75 million euros, planned collection of dividends based on the realized profit of economic companies in the majority ownership of the state in the amount of 40 million euros, realized collection of EU donations in the amount of 27 million euros.
The Government announced that the higher collection of income compared to the previous year, recorded in taxes and contributions to wages, more precisely in contributions to pension and disability insurance, due to the reduction of the gray economy in the labor market (primarily as a measure to reduce the total tax burden on wages as part of the package reforms Europe now 1) and increase in wages of employees in the public sector, corporate income tax, due to the application of a progressive taxation rate (Europe now 1) and the large growth of economic activity achieved in 2022, value added tax due to the growth of economic activity stimulated primarily growth of personal consumption and inflation. The increase in this form of tax was influenced by a good tourist season as well as a significant number of foreign citizens currently residing in Montenegro.
It is also stated that total budget expenditures are planned at 2,6 billion euros, which is 125,3 million euros more than originally planned.
"Increasing budget expenditures is proposed due to missing funds primarily in the area of social and child protection, pension insurance and provision of missing funds for financing the health system, namely for the payment of rights from the area of social and child protection in the amount of 23,1 million, rights from the area pension and disability insurance 32,0 million, missing funds within the Health Fund 19,0 million, payment of subsidies to employers who employ people with disabilities in the amount of 11,5 million, missing funds for wages in the amount of 7,4 million".
In addition to other things, according to the Government, a budget deficit in the amount of 216,3 million euros is planned, which is 125,3 million less than planned by the Budget Law for 2023.
"The Proposal for a Decision on Amendments to the Decision on Borrowing of Montenegro for 2023 has also been approved. These are technical changes for the purpose of harmonizing with the Proposal for a Law on Amendments to the Law on the Budget of Montenegro for 2023," it is stated.
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