Budget planned for 2019 amounts 2,384 billion EUR. Healthcare system, education system, infrastructure, agriculture will be provided with more money, explained the Minister of Finance, Darko Radunović.
“The Government of Montenegro doesn’t predict any additional measures of fiscal consolidation, except for those defined in 2017. Next year, we will focus more on the improvement of tax environment, further economic growth and increase in employment”, said Radunović.
Minister reminded that the Government started conducting fiscal policy with the implementation of the Plan for the Recovery of deficit and public debt which was later enhanced and complemented by the Fiscal Strategy for 2020.
“Measures were well balanced and resulted in strong economic growth, GDP growth and increase in the number of employed people. Also, international investment position of Montenegro strengthened, and reflected in the improvement of credit rating and the most successful issue of eurobonds aimed at refinancing one part of public debt”, said the Minister of Finance.
Minister is sure that every family had a chance to feel all the activities undertaken by the Government in order to improve life quality. He pointed out that this year we will have the highest capital budget.
Budget for 2019 is characterized by faster growth of income than expenses and, thus, the reduction in deficit by 2,97% of GDP. Current budget expenditures will completely be financed by source revenues and we will generate the surplus of current expenditure in the amount of 197 million EUR. That will fulfill one of the basic requirements for planning fiscal policy.
In the conclusion of presenting the Budget for 2019, Minister said that its main characteristics are the following:
– Growth of source revenues by 71 million EUR in comparison to 2018;
– Optimization of current budget expenditures;
– Increase in the investments in capital infrastructure;
– Increase in the funds provided for education, sport, agriculture, entrepreneurship;
– Reducing the needs for indebtedness;
– Regular performance of all public functions of the state;
– Regular payment of salaries.
The new Budget is, therefore, aimed at strengthening the measures of fiscal stability by implementing measures of fiscal consolidation.
