Today, the Montenegrin Government approved the Fiscal Strategy for 2023-2027, alongside a report on the public consultation process.
The strategy sets out fiscal policy goals, measures, and macroeconomic projections, aligning with European standards and focusing on making Montenegro a more attractive investment destination. It aims to boost economic growth, create jobs, and accelerate GDP per capita convergence with the EU average.
Nik Đeljošaj, Deputy Prime Minister and Minister of Economic Development, outlined that the strategy will regulate credit brokerage conditions and lender responsibilities to protect consumers better and foster competitiveness among creditors. The plan includes reducing the fiscal deficit, financing capital projects exclusively, and achieving a surplus in current budget expenditures.
The strategy forecasts an average annual economic growth rate of 3.7%, with inflation expected to slow to around 3% due to easing price pressures in Europe. Budget revenues are projected between 2.77 billion euros and 3.08 billion euros, while expenditures are expected to range from 3.01 billion euros to 3.36 billion euros.
The government also decided to revoke the approval for establishing the Novi Duvanski Kombinat Free Zone in Podgorica, due to the cessation of production and the lack of economic justification for its continued operation.
Additionally, the government approved project proposals for the 31st call for technical support and the extended 10th call for co-financing investments under the Western Balkans Investment Framework. Key projects include upgrades to the Port of Bar and the Mateševo-Andrijevica highway, with estimated costs of 1.62 million euros and 604.6 million euros, respectively.
Preparatory work for the construction of the Veruša-Lopate road section has also been approved. This project aims to enhance regional connectivity by linking regional roads with the Bar-Boljare highway, supporting economic development and infrastructure improvement.
