Montenegrin lawmakers from the Social Democrats (SD) have submitted an amendment to the proposed debt resolution, suggesting a reduction of 200 million euros from the planned borrowing amount.
According to the SD’s statement, the proposed resolution on borrowing indicates a 1.14 billion euro budget deficit, with an allowance for the government to borrow up to 900 million euros, with an additional 500 million euros possible in exceptional circumstances. The SD lawmakers are proposing a reduction of this additional borrowing by 200 million euros, lowering it from 500 million to 300 million, through more efficient management of public finances and the rationalization of unproductive expenditures. They also point out that the Fiscal Strategy forecasts the state will borrow three billion euros over the next three years, with the country’s net public debt expected to rise by 1.2 billion euros, from 4.3 billion euros last year to 5.5 billion euros by 2027.
Discussions on the budget and borrowing continued yesterday, but the session was adjourned after two hours without a vote, with lawmakers noting that they would be informed about the continuation of the session at a later time. Amendments have not yet been addressed.
Armen Šehović (PES) commented that inflation is a result of global economic trends and not due to bad policy. He argued that the government’s successful price control measures have helped reduce inflation and that investments in Plav have turned it into a modern urban city. Nikola Rovčanin (Demokrate) called the budget feasible and well-balanced, praising the historic achievement of an average salary exceeding 1,000 euros. He expressed satisfaction with the 15% increase in the capital budget and investment plans for the north, and pointed out that the debt-to-GDP ratio had decreased. However, he criticized the excessive prices in stores, questioning whether retail profits should be 200% higher than in 2020 and calling for price reductions.
Marko Kovačević (NSD) expressed satisfaction with the projects in Nikšić included in the capital budget, adding that he had submitted amendments for the construction of an autism center, the reconstruction of a sports hall, and the rebuilding of two roads. He also noted that over 5,000 people from Nikšić had been employed in the past three years. Jasmin Ćorović (BS) stressed the need for regional development, especially in the north, which had suffered from significant population emigration. He added that the budget should focus on equitable regional growth.
Miloš Pižurica (PES) argued that financial stabilization began in 2020, alleviating the financial burdens that citizens had previously faced, and highlighted the average salary now exceeding that of some European countries. Bogdan Božović (SNP) stated that the budget forms a foundation for future development, expecting increased tax collection, excise duties, and revenue from gambling. Jovan Subotić (PES) pointed out that 32 million euros had been allocated to the Igalo Institute, which he believes will significantly impact the economy of Herceg Novi and promote social stability.
Mihailo Anđušić (DPS) stated that Montenegro needs the proposed borrowing decision to be able to meet its obligations and pay salaries and pensions. He emphasized that the situation was more critical than it appeared, and pointed out that, for the first time, Finance Minister Novica Vuković warned of a potential bankruptcy if the borrowing is not approved. Anđušić argued that the priority for the parliamentary majority and the government is not the budget law, but the decision on borrowing, as failure to secure the loan would prevent the payment of public wages and pensions. He also supported the ongoing trade boycott, questioning why citizens should not boycott other services, such as water supply and tax authorities, given that they are paying inflated prices due to increased taxes. Anđušić suggested that the government could reduce fuel excise duties and VAT on essential food products.
