The number of service contracts in Montenegrin government institutions and administrative bodies funded by the state budget has decreased by 11.5% over the first half of the year, according to Branko Krvavac, Chief of Staff to the Prime Minister.
In February, the government established a Commission to analyze and monitor these contracts, led by Krvavac. The Commission reviews requests for contract approvals based on multiple criteria, including whether the contract is new or existing, job description, duration, payment amount, and whether funding is approved by the Ministry of Finance.
Certain bodies, such as the President’s Office and the Parliament, are excluded from this review as they are not part of the executive branch. Since December 2024, taken as the baseline, significant reductions in contract numbers have been recorded.
So far, the Commission has held 12 sessions, reviewing 150 requests covering 2,320 contracts. It approved 1,862 contracts, mostly existing ones, and rejected 452.
The largest numbers of these contracts are within the Ministry of Interior, the Prison Administration, the State Property Administration, the Real Estate Administration, and the Tax Administration. In some branches of the Ministry of Interior and Tax Administration, more people are engaged on service contracts than full-time employees.
Krvavac emphasized that these contracts are intended for temporary or unsystematized work and are not a form of regular employment. However, in some cases, contracts have been repeatedly renewed for up to 15 years due to the absence of official job positions.
The goal is to properly systematize positions to reduce reliance on such contracts without compromising the efficiency of public services. The Commission also aims to propose legislative changes to prevent abuse of long-term contracts.
Krvavac stated the target is to reduce the number of service contracts by at least 20% by the end of the year while maintaining public service efficiency.
Addressing opposition claims about economic slowdown, Krvavac argued these claims lack basis, highlighting Montenegro’s economic growth driven by energy and tourism sectors. He pointed to a 2.5% GDP growth in Q1 2025, a doubling of GDP over four years, a 20% rise in wages, unemployment falling below 10%, and budget surpluses, indicating a stable and growing economy.
