English

Kostić: Government’s decision to save MA is right

Economic analyst, Mr Vasilije Kostić, holds that the Government was right to commit to preserving national air carrier, Montenegro Airlines (MA).

Importance of MA and its profitability shouldn’t be regarded only through the final account of this company’s budget.

“I think Government’s decision to stand for the maintenance of MA is correct. MA id a company of national importance which has an impact on overall economic development of our country and it should be regarded in that context”, pointed out Mr Kostić.

Minister of Finance, Mr Darko Radunović, said that MA could be sustainable after financial assistance the country had provided. National airline company contributes to tourism and growth of budget revenues. Despite ll the problems, it generates a revenue of around €70 million at annual level.

Proposal for the budget envisages over €1 billion for current expenditure. Budget reserve will amount to €22,5 million and state funds will have €769,2 million. Capital budget will amount to almost €230 million. Around €145,7 million will be earmarked for the highway. The country will earmark €557 million for financing its own expenses.

Mr Kostć says that a budget has to be a reflection of future projections and that economic growth rate seems real.

“The budget reflects the future needs. Fundamental assumption on which the projection of the budget growth rate is based seems real, and, therefore, it gives the budget a credibility framework”, said Mr Kostić.

He believes that, next year, Montenegro will achieve projected economic growth (3,4%).

Mr Kostić says that one of fiscal policy objectives is to reduce deficit.

“If there’s a need for additional spending, the Government has to stick to its commitment to maintaining projected measures”, said Mr Kostić.

Budget proposal doesn’t envisage funds for the Commission of the allocation of housing loans. The Government decided to work on the new model of settling housing issues.

 

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