NewsMontenegro's 2025 budget proposal: Surplus in current expenditures, focus on economic growth...

Montenegro’s 2025 budget proposal: Surplus in current expenditures, focus on economic growth and public welfare

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The Government of Montenegro has approved the Draft Budget Law for the upcoming year, along with a Decision on Borrowing for 2025. The budget plan includes a projected surplus in current expenditures, meaning the country will borrow solely for repaying existing debts and funding capital projects.

  • “This fulfills the ‘golden rule’ of budgeting, ensuring that the government finances its current obligations using current revenues,” stated the Government.

According to the proposal, the budget’s revenue is projected at 2.88 billion euros, an increase of 102 million euros compared to the 2024 plan.

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  • This represents a 3.7% growth, despite a reduction in pension and disability insurance contributions, part of the broader tax relief reform aimed at lowering the tax burden on wages.

Expenditures are planned at 3.16 billion euros, resulting in a budget deficit of 278 million euros, or 3.5% of GDP, in line with the fiscal strategy.

The Government also emphasized that the budget includes measures aimed at improving the standard of living for citizens, which are part of the “Europe Now 2” program. These measures include raising the minimum wage from 450€ to 600€ and 800€, salary increases for all employees, with the goal of achieving an average salary of 1,000€, as well as increases in both minimum and average pensions, and higher allowances for professional training and student loans.

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The budget is designed to ensure economic stability, with a planned budget deficit maintained at an average of 3.3% of GDP over the next three years, and net public debt at an average of 61% of GDP, meeting fiscal responsibility criteria. The capital budget for next year is set at 280 million euros, earmarked for the continuation of multi-year projects, with a total estimated value of 3.7 billion euros.

Looking ahead, the Government expects a continuation of positive economic trends, with a projected real GDP growth rate of 4.8%, further reduction in inflationary pressures, and increased employment.

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