Montenegro’s budget revision allocates 25 million euros for the health system, nearly 13 million euros in one-off aid for pensioners and more than 21 million euros in subsidies for employers hiring people with disabilities. The Finance Ministry also said the revision provides additional funding for education and old-age benefits.
The allocations address health and social support alongside other state spending. The ministry identified citizens’ health, social security, the timely fulfilment of state obligations and continuity of economic development as priorities for the revised budget.
The ministry said Montenegro’s economy was performing better than expected, and raised its growth projection for this year from 3.1% to 4%. Budget revenue reached 2.32 billion euros in the first nine months, up 216.8 million euros, or 10.3%, from the same period last year, it said.
Positive trends in tourism, industry and investment showed the economy’s growing potential, according to the ministry. It said the results provided a basis for directing additional funds to areas where they were most needed, and described the revision as reflecting the state’s commitment to responsible management of public finances.
Davor Dokić, an economic analyst, said the revision had been expected because the prime minister had promised pensioners 100 euros in aid by New Year. In Dokić’s view, that payment could not be made without changing the budget. He said the existing deficit was above 3% and the revision would add about 70 million euros to it.
Dokić also addressed indicators presented by Vuković, saying they were insufficient to bring the deficit back to the permitted 3% level. He put the current deficit at 4% and warned that further spending would “cause a real collapse of public finances”. “You already have no money, and then you add costs so you have even less,” he said.
He criticised higher public spending as the state prepares to repay 1.35 billion euros in foreign debt next year. Responding to a deficit with more deficit would cause major disruption in Montenegro’s economy, he said. Dokić added that the “euro model” would cost Montenegro 700 million to 750 million euros and called for a “serious analysis” of what the economy could currently withstand.
