The main goal of the Government in the area of fiscal policy is to create preconditions for a comprehensive reform of the tax system, with the aim of expanding the tax base, and thus creating new sources of income, announced the Minister of Finance, Novica Vuković.
Today in the Parliament, during the discussion on the Fiscal Strategy Proposal of Montenegro for the period from now until 2027, he said that it is a key development document for the time frame of the Government's mandate, in which the key measures of the economic fiscal policy, as well as other reforms, are defined. in the field of business environment.
Vuković emphasized that Montenegro has not had a fiscal strategy since 2021.
"The very existence of the Fiscal Strategy enables the predictability of the Government's policy and vision, both for the economy and investors, as well as for citizens," said Vuković.
According to him, every measure provided for in the Fiscal Strategy has been carefully analyzed from the aspect of its impact on macroeconomic and fiscal stability, as well as on employers and employees.
It is projected that the state budget will be deprived of between 180 and 200 million euros based on the reduction of contributions for pension and disability insurance, but this will be compensated by various measures.
The program implies a reduction of the tax burden on work, in order to relieve employers of part of the biggest fiscal cost - that is the cost of wages.
Vuković also announced that there is no increase in the general tax rate of value added tax (VAT), profit tax and income tax.
"The main characteristics of the fiscal policy in the medium term will be the continuation of the reduction of the tax burden on labor, the harmonization of the excise policy with EU directives, the reduction of the gray economy, the reform of the tax and customs administration and better management of the tax debt," said Vuković.
MP of the Europe Now Movement (PES), Tonći Janović, said that by adopting the Fiscal Strategy, they are sending a clear signal to the economy that the tax policy is transparent and predictable in the next three years.
"We haven't had it since 2021 and it is a legal obligation of every government. This created uncertainty when it comes to the domestic economy and foreign investments from ad hoc changes in tax policy," said Janović.
He said that as a confirmation of those fears, they had the 100 million EUR that the 43rd government raised at a record rate of 12 percent.
"We receive the most criticism from the members of the 43rd government when it comes to the Fiscal Strategy, that is, from those who were unable to make any reform or fiscal strategy," Janović assessed.
According to him, for decades no one cared about the standard of living of citizens who were served crumbs from the table of party officials for years through a minimum pension of 145 euros and a salary of 250 euros.
He stated that the Fiscal Strategy includes everything that our pensioners have been deserving for years.
"They couldn't do that, because it was easier to sell off state property and enrich party individuals," Janović added.
The Government's focus, as he explained, is to increase the standard of citizens through that document and then to attract foreign investors by reducing the tax burden, which is the lowest in the region.
The representative of the Democratic Party of Socialists (DPS), Danijel Živković, said that we have a Fiscal Strategy, which is the plan of the European Movement, which has failed and is losing the support of citizens from election to election.
"Before the elections, you promised the citizens a minimum of 700 euros, which is not the case. You promised an average pension of EUR 600, as well as a 25 percent salary increase. In the government today, you have a salary increase of five to seven percent," said Živković.
He said that the promised working hours were seven hours, but it was clear that there was nothing of that.
"Also, it was said that we will have an average salary of one thousand euros, and there is nothing from that," added Živković.
According to him, Prime Minister Milojko Spajić, when he was the Minister of Finance in the government of Zdravko Krivokapić, promised a thousand jobs in Pljevlja, one billion EUR from Japan and a zero unemployment rate.
"Today, you have investors who are leaving Montenegro, and not investing in it," Živković believes.
He stated that the standard of living of citizens is lower than before 2020, when you see the prices of apartments, apartment rentals, in markets, because it is clear that this inflation has eaten up the increase in wages.
"You increased levies because you don't know how to fill the holes in the budget. For the next two years, the debt must amount to over two billion euros. This is the famous billboard wasteful economy that aims to put Montenegro in debt and bring it to the Greek or some other scenario and destroy Montenegro's finances", Živković believes.
MP of the URA Civic Movement, Miloš Konatar, said that it is a good thing that the Fiscal Strategy was adopted, but that it should improve the state of finances in Montenegro and provide guidelines on how to be better.
"This Fiscal Strategy in 2027 does not respect the Maastricht criteria. What is certain is that at the end of 2027, Montenegro will be one billion euros more indebted than it is today, in nominal terms," Konatar said.
He added that in addition to a billion more debts, "there is not even a well-known seven-hour working time".
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