Finance Minister Novica Vukovic said the government’s proposed 2026 budget totals €3.79bn and includes a record €305m capital budget. He projected average annual economic growth of around 3.2–3.3% in the medium term. New borrowing for 2025–2028 will be used only for capital projects and repayment of existing debt, with €1.1bn planned for capital spending over the next three years. Investments will continue in highways, health infrastructure and other major projects.
Vukovic stated that Montenegro will need €710m in 2026 to finance the capital budget and service maturing debt, though this amount may be reduced depending on available deposits and market conditions. Budget revenues and deposits together amount to a projected €3.79bn, with the largest expenditures in social care, public finance, health, and education. The 2026 budget is lower than that of 2025, mainly due to reduced debt-repayment needs.
He said pension payments are secure, with regular annual indexations planned, and clarified that no 30% salary increase for officials has occurred. He also noted that no work is currently underway on a new “Europe Now 3” programme.
The Ministry of Finance emphasised that the 2026 budget supports economic growth, fiscal stability and EU-related reforms, with key investments in transport, health, education, digital infrastructure, environmental projects and security. The plan allows borrowing of up to €2bn for development and guarantees up to €171.95m. Major projects include a data centre in Podgorica, railway modernisation, housing development at Velje Brdo, and construction of a new university clinical centre.
Debt servicing and capital expenditures in 2026 will require up to €710m, using both deposits and new borrowing. Given large repayments due in 2027 and 2028, the budget also foresees the possibility of additional borrowing of up to €1bn to secure fiscal reserves. The government says the budget ensures stable operations, accelerates investment and supports Montenegro’s progress toward EU membership.
