Trade union representatives, Central banks, businesses, municipalities, associations of people with disabilities (OSI) and others believe that the budget for next year is moderately optimistic - that subsidies for agriculture and the economy are low, that sick leave abuses continue in state-owned companies, that more allocations are needed for infrastructure, salaries, that the economy relies on VAT...
This could be heard during the session of the Committee on Economy, Finance and Budget, where MPs will continue their discussion on the Budget Proposal for 2026 tomorrow. The state treasury for next year "weighs" 3,78 billion euros.
The Director of the State Budget Directorate at the Ministry of Finance, Bojan Paunović, stated that they expect the economy to grow by 3,2 percent on average in the coming years, that inflation will slow down, and that budget receipts for the coming year are 3,79 billion euros.
"The original budget revenues in the period from 2026 to 2028 range from 3,08 billion euros or 36 percent of GDP, or 3,3 billion or 35 percent of GDP in 2028. Expenditures range from 3,3 billion or 39 percent of GDP in 2026 or 3,5 billion or 37,7 percent of GDP in 2028. The nominal growth in expenditures is conditioned by the growth in allocations for capital expenditures, social protection...", he said, adding that the legalization of illegal facilities or the possible concession of the Airport of Montenegro are not included in the revenues.
Paunović added that compared to this year, current budget expenditures are increasing by 100 million euros, the state funds budget by 99 million, the capital budget by 25 million euros, while financing transactions and reserves are reduced by 3,3 million euros. He pointed out that the most significant allocations are for social welfare, namely 1,1 billion, debt repayments 760 million, healthcare 521 million, education, science and sports 368 million euros...
He also announced that the budget deficit next year will be 3,2 percent of GDP, which will be due to infrastructure construction.
Finances stable
Paunović added that public finances are currently and will be stable in the future and that 80 percent of budget expenditures are mandatory costs, while 15 percent can be used for specific development projects - so the room for maneuver is limited.
Commenting on the amounts allocated for subsidies to the economy, he added that they could be higher, but that they have increased by 6 million euros compared to this year, and that the Credit Guarantee Fund will also provide assistance in the future. He added that 726 million euros will go to salaries next year, which is an increase of 8 million euros compared to this year.
He emphasized that the goal of issuing government bonds was to develop the domestic market, and that it was not done for the sake of the state's liquidity.
"There are a large number of projects that are not being implemented, these projects are in the budget and assumptions are being created for them, and the bulk of the budget relates to larger infrastructure projects. There are a significant number of projects that have their own financing lines, and we create legal assumptions for those projects and then they are implemented according to the dynamics...", emphasized Paunović.
"Import coverage by export - never worse"
Vice President of the Chamber of Commerce, Dragan Kujović, stressed that the budget is not sufficiently development-oriented, but that sustainable revenue growth is a key issue for the long-term stimulating nature of the budget. He stated that according to their analyses, the coverage of imports by exports is only 12 percent, which is never worse, and that companies are not competitive enough, which is a particular problem when entering the EU.
He pointed out that the capital budget, which is 25 million more than this year, is insufficient and will not affect new forms of production, and that there are no new incentives for the economy.
"As a positive example, I would cite the Innovation Fund, however the funds are modest, 2,4 million euros, and they relate to startup support, innovations... I think today's protest by farmers in front of the Government best says what they think about the budget. Without incentives, we cannot expect agricultural production. The digitalization of the economy is supported, but I consider a few hundred thousand euros insufficient...", he emphasized.
"We don't have factories, but we have VAT"
Fidelity Consulting CEO Miloš Vuković added that the budget preparations violate four of the five Maastricht criteria, i.e. the currency rule, while the inflation ratio, deficit, gross debt and level of indebtedness are violated. He emphasized that the budget was delayed and that the criteria for fiscal responsibility are violated, which, he said, the SAI constantly points out.
"We don't have factories but we have VAT, we don't have exports but we have VAT on imports, there is no productivity growth but VAT is growing because the economy is burdened by VAT. Our only industry is VAT. The fiscal result depends on how much citizens pay for the basket, we live on what citizens spend. Inequality is paradoxically greater even though salaries and pensions have increased, the rich have even more and the poor have less," he said.
Vuković pointed out that the citizens gave the best rating to the system because they took 20 million out of the 50 million available when issuing government bonds, and that serious money can be saved on public procurement.
Researcher at the Institute Alternative, Marko Sošić, emphasized that citizens are not sufficiently informed about the budget, that 20 percent of the budget goes to salaries, while previous problems continue - failure to change laws, collective bargaining, accommodating unions...
Cashier flexibility limited
Central Bank representative Marijana Mitrović Mijatović said that they are of the opinion that a correlation must be made between wage growth and productivity, which was also recommended by the International Monetary Fund.
"Fiscal space for flexible adjustment to unexpected circumstances remains limited. The Central Bank supports program budgeting, we believe that the budget is projected in an environment of moderate optimism. It is aligned with the Fiscal Strategy, but the growth projection is based on domestic consumption and investments and stable tourism activity. To summarize the risks - slowdown in tourism, investment due to the departure of non-residents, weakening of the credit cycle, international challenges...", she stated.
Mitrović Mijatović emphasized that the economy remains dependent on sectors that may experience stagnation or decline.
The President of the Employers' Union, Slobodan Mikavica, said that the budget has realistic expectations, but that it could do better because the problems of sick leave abuse remain - which costs the budget 60 million euros and is 15 times more than in the private sector, as well as the lack of fight against the shadow economy.
He pointed out that the incentives are not at the level they should be, that there are no measures to strengthen competitiveness, a green economy, and a just transition, and that the planned spending and revenues are realistic.
The President of the Association of Managers of Montenegro, Budimi Raičković, said that limited and controlled employment in the public sector is needed, with a focus on accountability, performance and better use of existing capacities. He stressed that they support borrowing for capital projects, but only those that support development.
Executive Director of the Foreign Investors Council Arijana Nikolić Vučinić added that support for the development of economic competitiveness has not received sufficient support in the budget and that a small amount is allocated for that sector, namely 3,6 million euros. She emphasized that funds related to capital projects should be increased, especially in the road infrastructure sector.
The Confederation of Trade Unions stated that the budget proposal should have been discussed before the Social Council, because the unions want an agreement on the calculation value of the coefficient by the end of the year - so that the salary level is realistic. The Union of Free Trade Unions indicated that they are also not satisfied with the state of salaries in the public sector, which is planned for 25 million next year - and that it has not been explained how this will be achieved. They emphasized that inflation has eaten into the salary increase through the "Europe Now 2" program.
The Secretary of the Local Government Financing Committee of the Union of Municipalities, Žana Đukić, said that the budget planned significant capital projects for ski resorts in the north, but also that transfers of child and social welfare services were not sufficient.
Committee Chairman Boris Mugoša stated that the problem is that laws are still being passed without proper fiscal analysis and the opinion of the Government.
40 million will be needed for subsidies for disabled people
The Executive Director of the Association of the Blind of Montenegro, Goran Macanović, emphasized that the subsidies from the Employment Agency for persons with disabilities for the next year amount to 24 million euros, while 40 million euros could be needed for these purposes.
He pointed out that 50 percent of PWDs for whom employers receive subsidies receive minimum wages.
"Tell me what the number of PWDs is who receive 7.000 and 10.000 euros, I claim that this is a lie that is being deliberately spread in order to change the thesis and PWDs as a group, to put them on the pedestal to criminalize and jeopardize the stability of the budget. Instead of swallowing the pill through media appearances and appearances by Zavo, the Ministry of Finance should see if it is generating enough income from special contributions for the unemployment of PWDs," he said.
Macanović stated that there are 5.000 people with disabilities who receive subsidies in the amount of the minimum wage.
Member of the Senate of the State Audit Institution (SRI), Milan Dabović, said that the budget was technically excellently prepared, and that spending on social benefits was significant. Dabović requested that the SRI budget be included in the budget for next year, after it is previously approved by the Board.
They demand hearings from energy and ecology leaders
The Committee's agenda was also supplemented by the initiative of opposition MPs who requested a control hearing of the Minister of Energy Admir Šahmanović, the Minister of Ecology, Sustainable Development and Northern Development Damjan Ćulafić, the Chairman of the Board of Directors of Elektroprivreda Milutin Đukanović, the Executive Director of EPCG Zdravko Dragaš, and the Director of the Environmental Protection Agency Milan Gazdić.
Civic Movement URA MP Miloš Konatar explained that they requested the hearing because the Pljevlja Thermal Power Plant was put into operation, which significantly worsened the air quality there. That is why, as he says, they are asking who gave the approval and how 100 million euros were spent on its ecological reconstruction.
New Serbian Democracy MP Vladimir Đoković stated that this issue should be dealt with by another Committee, such as the one for tourism, agriculture, ecology and spatial planning.
Europe Now Movement MP Dražen Petrić said that the situation is serious in Bijelo Polje as well, but that he believes that the topic should be taken over by another Committee.
Konatar emphasized that he believes that the operations of EPCG are under the jurisdiction of this Board, and that someone said that the thermal power plant should be put into operation, and that it is important to find out who gave the green light because it is an ecocide.
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