At the 60th session held yesterday, chaired by President Dritan Abazović, the government adopted the Macroeconomic and Fiscal Policy Guidelines for the period from 2023 to 2026, a document that is the basis for preparing the budget for the following year.
In the observed period, the following are projected:
– real economic growth at the level of an average of over 3 percent in the period 2023-2026. years;
– continuous reduction of the public finance deficit from the planned 7.2 percent in 2023 to 3.4 percent of GDP in 2026;
– investment in the financing of infrastructure projects of approximately EUR 1.6 billion in the period 2023-2026;
– ensuring a stable downward trend of public debt from the planned 68.5 percent of GDP in 2023 to 61.3 percent of GDP in 2026.
In the part of the tax policy in the period 2023 – 2026, the emphasis will be on measures to suppress the gray economy, expanding the tax scope, implementing adopted and amending existing legal solutions, implementing structural reforms, strengthening the institutional framework and improving the functioning of the tax system, which affects projections of income levels and improvement of tax policy in the medium term.
A strong recovery in, dynamic private consumption in the country and a large inflow of foreign direct investments made it possible to preserve macro-financial stability in 2022 and achieve strong economic growth, according to the Government announcement.
– Numerous macroeconomic parameters record the best results so far. Last year, the Montenegrin economy grew faster than the regional average, with the nominal value of the gross domestic product reaching a record amount. Economic growth in 2022, according to preliminary data, amounted to a strong 6.1 percent, with the highest economic growth in Europe officially recorded in the second quarter – the announcement emphasizes.
The growth prospects of the Montenegrin economy in the medium term are assessed as favorable. Macroeconomic parameters are expected to stabilize, after several years of large fluctuations, whereby economic growth will slow down and stabilize at a more sustainable level.
According to the preliminary macroeconomic projections of the Ministry of Finance, real economic growth of 3.4 percent was estimated in 2023. According to the basic medium-term scenario of macroeconomic developments, an average rate of economic growth of around 3.0 percent is expected in the next three years, with projected rates of 3.2 percent in 2024, 2.8 percent in 2025 and 3.0 percent in 2026. year.
As emphasized, in the coming period it is necessary to implement additional fiscal consolidation measures that will ensure better collection and realization of additional budget revenues, as well as optimize public spending, in order to ensure the sustainability of public finances in the long term.
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