If Podgorica does not get power by the end of the year, temporary funding would almost certainly be introduced in the capital city, which would mean that there would be no money for new programs and projects, while some existing ones, for which larger allocations are necessary, would be endangered because for them funds were given "by the spoonful".
According to the Law on Local Self-Government Financing (Article 30), the budget of the Capital City/Municipality should be adopted no later than December 31. If this does not happen, the local parliament adopts a decision on temporary funding, for a maximum period of three months. In this case, funds are approved monthly up to one twelfth (1/12) of actual expenditures in the previous fiscal year.
A month and a half after the local elections in Podgorica, there are no indications that any of the political actors could form a local government, and the time to do so is running out. The constitutive session of the Assembly of the capital city is scheduled for November 28, and the deadline to constitute it by electing its head expires on January 5, 2024, i.e. 60 days from the publication of the final election results in the Official Gazette (the mayor is elected within 30 days at the latest since the constitution of the parliament). If this does not happen, the head of state will have to call for new elections.
In that case, it is most likely that the parliament will introduce temporary financing in the capital, because it is unlikely that the government, which was left without a majority in the Assembly this summer, would receive the support of the opposition and former coalition allies for its budget proposal.
The introduction of temporary financing could create more problems. For example, if an investment or a program in Podgorica needed more money than before, it could not be set aside because the law stipulates that one-twelfth of last year's expenditures should be given for that purpose.
The problem could also arise with the financing of sports clubs. So, for example, the Women's Handball Club (ŽRK) "Budućnost", which has been owned by the Capital City since this summer, would not be able to receive even a twelfth of the funds because it was not in last year's budget.
When it comes to other sports clubs, they could receive a twelfth of the previous year's monthly funds. However, if there was a budget, they would receive the entire amount of money at once after the competition for their co-financing.
In addition to all that, if new projects or programs from various other areas supported by the Capital appear, their financing would be impossible.
In previous years, several Montenegrin municipalities were temporarily financed: Tivat, Pljevlja, Andrijevica..., and that model was also implemented at the national level in early 2021, after the change of government.
The planned budget of Podgorica for the next year is 153 million euros, and the capital city is confident that it will have 112 million euros in its coffers from taxes, fees and fees.
This is written in the Draft Decision on the Budget of the Capital City for 2024, which is signed by the President of the Capital City Assembly Jelena Borovinić Bojović.
The draft has been under public discussion since last week, and suggestions and proposals can be submitted by the end of next week.
As stated in the document, the expenses of the Capital City should amount to 149 million euros. Of that, 60 million should be set aside from the treasury for current budget spending, debt repayment (3,2 million), but also obligations from an earlier period of 2,6 million euros.
According to the draft, the personal income tax will amount to 38 million euros, and the real estate tax will amount to more than 15 million euros. The capital could receive more than 16 million euros from capital donations.
The document plans to set aside a little more than seven million euros for payments to institutions, individuals, non-governmental and public sectors. Institutions of culture and sport would receive the most, four million, while non-governmental organizations and political parties would receive a total of more than one million euros. According to the draft, EUR 150.000 is earmarked for one-time assistance.
The capital planned to spend 87 million euros for capital expenditures, i.e. city projects. For reconstruction projects or the construction of streets, roads and other local infrastructure, an allocation of 61.438.500 euros is planned.
The elections in Podgorica were held on September 29, and in them the Democratic Party of Socialists (DPS) won 19 mandates, the coalition of the Europe Now Movement (PES) and Democratic Montenegro 14, the coalition "For the Future of Podgorica" 13, the paper "Za bolja Podgorica" six, the European Union three, and the Party of European Progress (SEP) and the Movement "Revolution" two mandates each.
The government in Podgorica consists of the PES, a coalition gathered around the former Democratic Front (the current coalition "For the Future of Podgorica"), the Democrats and the Citizens' Movement (GP) URA.
DPS platform next week?
Yesterday, several ruling and opposition parties secretly told "Vijesta" that there are no concrete negotiations on the formation of the government in Podgorica yet.
The interlocutor from DPS, the strongest opposition party, said that their negotiation platform should be ready during the next week, and that after that they should send a new invitation for talks to potential partners.
At the beginning of last week, DPS organized a meeting attended by representatives of the European Union and SEP. The meeting was not attended by representatives of the coalition "For a better Podgorica", which consists of the Movement for Podgorica close to the state president Jakov Milatović, the Movement for Change and GP URA.
A source from the "For the Future of Podgorica" coalition said that he expects formal talks on the constitution of the government to begin soon, without specifying with whom, adding that informal ones already exist.
A source from the "Za bolja Podgorica" list said that "everything smells like an agreement will not be reached".
Politics can threaten water supply and garbage collection
By the end of the year, the city parliament would have to make decisions on increasing the price of water and fees for waste removal. The regulator approved a 41 percent increase in the price of water, which must be formally supported by the councilors, while "Čistoća" requested a 50 percent increase in the fee for garbage removal, which the government accepted by amending the existing law.
If the decisions on increasing those prices are not made, and some parties have announced that they will not vote for it, the regulatory costs of "Water" and "Cleaning" would then have to be reimbursed from the city budget for the following year. If it is not adopted and if temporary financing is used, those companies will not be able to get that money and will be brought to the brink of bankruptcy, as their administrations have already warned.
This would threaten the public services that citizens receive from these companies.
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