Prime Minister Milojko Spajić and Finance Minister Novica Vuković are set to present Montenegro’s proposed budget for 2025, which outlines key fiscal measures aimed at boosting economic growth and improving living standards for citizens.
The draft budget forecasts total revenues of €2.886 billion, an increase of €102 million (or 3.7%) compared to the expected revenues for 2024. This growth is despite a reduction in pension and disability insurance contributions, part of a broader tax reform intended to lower the payroll tax burden.
Expenditures are projected at €3.16 billion, with the budget deficit estimated at €278 million, or 3.5% of GDP, in line with the fiscal targets set out in the government’s fiscal strategy.
Key elements of the budget proposal include measures aimed at improving the standard of living for citizens, as part of the “Europe Now 2” program. These include:
- Increasing the minimum wage from €450 to €600 and €800.
- Wage hikes for all employees, aiming to reach an average monthly wage of €1,000.
- Pension increases, both for the minimum and average pension.
- Higher allowances for professional training and increased funding for student loans.
The budget also emphasizes public finance stability, with plans to keep the budget deficit at an average of 3.3% of GDP over the next three years and maintain net public debt at an average of 61% of GDP, ensuring the country meets its fiscal responsibility goals.
A capital budget of €280 million is allocated for multi-year projects totaling an estimated value of €3.7 billion.
For the coming year, the Montenegrin government projects a real economic growth rate of 4.8%, a further reduction in inflation, and an increase in employment.
The 2025 budget proposal will be discussed in more detail at a press conference scheduled for Monday, November 18, at 12 p.m.
