Montenegro’s Prime Minister, Mr Duško Marković, presented the third package of measures for support for citizens and economy worth €1,2 billion.
Mr Marković said that the Government had adopted third set of economic measures to support citizens and economy worth €1,22 billion for the period of four years.
“Apart from health crisis, coronavirus pandemic provoked global-scale economic crisis negative effect of which cannot be accurately estimated. After we successfully overcame challenges at the very beginning of the epidemic and responded with adequate measures of economic support, we expected that the third package of measures will be adopted in more favorable ambiance than it is now”, PM pointed out.
The first package amounted to €280 million and referred dominantly to maintaining current liquidity and supporting the most vulnerable categories of the population. The second set of measures was focused on the preservation of jobs and creation of conditions for the recovery of our economy. A total of €40 million has been earmarked.
Stability of financing system
PM said that it was equally important to provide money in fiscally sustainable way, without jeopardizing stability of the financial system.
“In order to implement this economic strategy, the Government has prepared a whole specter of legislative interventions. That specter encompasses adoption of two new laws: Law on Innovation and Law on Incentive Measures for the Development of Research and Innovation. It also encompasses substantial interventions in terms of amendments to two important legislative texts: Law on VAT and Law on Energy”, PM said.
Safety foe employees, pensioners, users of social benefits and all citizens
President of the Government said that new economic strategy would stretch to four-year period, providing certainty for our economy, companies and entrepreneurs.
The third package of measures will encompass some short-term and particularly long-term measures.
The purpose of short-term measures is to provide:
– Support for tourism sector in the amount of €83.350.00
– Stimulus to agriculture and fishery for the realization of investments, totaling €89,4 million.
– Improvement of the competitiveness of the economy through 17 program lines and €10 million of grants in 2020 only
– Support for the economy through subsidies on salaries including tourism, totaling €16,2 million
– Support for the most vulnerable categories of the population (€1,8 million)
€200 for the most vulnerable categories, 13% increase in the lowest pensions
Mr Marković said that €200 would be intended for the users of material security of families and fighters.
“The Government will propose amendment to the Law on the Amendments to the Law on Pension and Disability Insurance to provide users of the lowest pensions with 13% increase which is to be paid retroactively”, PM said.
Long-term measures for development of tourism, IT sector, agriculture, fishery, energy and traffic
PM presented long-term measures that are intended for:
– development of IT with tendency of it becoming IT industry.
– tourism as strategic economic branch
– agriculture and fishery
– energy and
– traffic
“The third package of measures has recognized the space for fast and focused development, based on achieved results, tried experiences and platform of putting existing resources in the function of sustainable development. In this part we have recognized the importance of investing in IT, and we committed around €30 million for that sector. There’s also another field we need to act in. The necessity for rationalization and reduction of non-productive costs”, PM said.
Therefore, the third package of measures will encompass the following as well:
– Reduction in current non-investment expenditure in additional 10% .
– Reduction of rolling stock in public administration, limiting number of users entitled to use official vehicles, as well as sale of one part of the rolling stock.
– Rationalization of salaries in state-owned companies
It is our duty to turn the words into actions
Prime Minister said that “it is Government’s duty to ensure economic and financial stability, as well as material stability of every individual, providing infrastructure and overall development and further growth of our economy.
“We haven’t taken approach like some other economies that have short-term plans and interventions. W have set a deadline of four years with €1,22 billion worth investment in development and sustainability.
