The Montenegrin government has approved additional funding for the State Audit Institution to resolve a salary dispute that has hindered audit operations as the October 15 deadline for parliamentary review of public finances approaches. This decision comes as the government directs the Finance Ministry to allocate funds from the current budget reserve to implement revised professional grading rules starting in October.
In addition, there are plans for auditors’ salaries to be aligned more closely with those of the judiciary, effective from January 1, 2027, although this change is still pending implementation. The recent industrial action has already affected the State Audit Institution’s ability to perform its duties, including critical tasks related to the government’s final budget accounts.
The institution is facing an October 15 deadline to submit its audit report to parliament, making the resolution of this dispute crucial not only for employment conditions but also for the integrity of financial oversight. As Montenegro’s highest external public-sector audit body, it plays a vital role in ensuring compliance with budget law regarding government revenue and expenditures.
Delays in the audit process could undermine parliamentary oversight at a time when Montenegro is increasing public investment and preparing its budget for 2027. While the immediate transfer of reserve funds aims to alleviate current financial issues, the long-term salary framework remains incomplete.
This situation underscores the need for maintaining institutional capacity in public finance governance as government spending becomes increasingly complex. Montenegro is concurrently managing significant infrastructure projects, EU-funded initiatives, and potential wage reforms, highlighting the growing importance of independent scrutiny in budget execution.
The effectiveness of this funding intervention will be assessed based on whether it enables the audit institution to finalize its report timely and restore normal operational activities.
