At a recent panel titled “Fiscal Strategy and Tax Compliance: A Partnership for Stable Economic Growth” during the XIX International Congress of Accountants and Auditors in Montenegro, Milena Milović, Economic Policy Advisor to the Prime Minister, highlighted the government’s key objectives: reducing the shadow economy, increasing employment and enhancing the business environment. She emphasized that all current expenditures will be financed through ongoing revenues.
“Our aim is to maintain a deficit of around three percent over the next three years, with public debt capped at 60 percent of GDP. Any borrowing will be exclusively for capital projects, and we have implemented measures to reduce costs for employers,” Milović stated.
Biljana Peranović, General Director of the Directorate for Tax and Customs System at the Ministry of Finance, noted that the fiscal strategy has brought numerous benefits to the economy. “The primary goal is to create a favorable business environment that attracts investments. Currently, we have the lowest labor costs and the lowest corporate tax rate,” she remarked.
Sava Laketić, Director of the Tax Administration, confirmed the positive impact of the fiscal strategy on their operations. “We are prepared to respond to these changes effectively. The reform of the tax administration is gaining momentum, which will aid us in combating the shadow economy. This year, we have already seen an increase in revenue collection of over €200 million compared to last year, reflecting a growth of about 20 percent,” Laketić reported.
Predrag Drecun, Chairman of the IRFCG Board, described the fiscal strategy as sustainable. “This involves redistribution, and while some may be dissatisfied, we must rectify past injustices. We cannot address all inequities at once,” he explained.
Moderated by Anastasija Boljević, General Secretary of ISRCG, the panel also featured Zoran Vukićević, President of the Chamber of Tax Advisors of Montenegro. Participants identified a significant future challenge: a shortage of workforce.
Milan Dabović, a Senator at DRI, presented insights on managing fiscal policy, urging local governments to seek government approval before taking on debt and to avoid increasing social and transfer payments or non-productive employment. “It is essential to gradually reduce the share of current budgets in total public spending,” Dabović emphasized.
The congress opening also addressed challenges facing the accounting and auditing profession. Vinko Nikić, President of the Board of the Institute of Certified Accountants (ISRCG), stated that the profession must adapt despite being in a more difficult position than the previous year. “We are here to find solutions in these challenging times, looking ahead to future global challenges. We want to emerge from this congress with concrete conclusions that will benefit decision-makers,” he said.
Ana Lalević Filipović, a professor at the University of Montenegro’s Faculty of Economics, asserted that the accounting and auditing profession must realize its full potential. “The challenges we face are greater than ever. We can no longer view accounting as a traditional craft; it is now one of the most dynamic professions,” she noted.
Minas Trubljanin, General Director of the Directorate for Central Harmonization at the Ministry of Finance, mentioned that ISRCG and the Ministry share common values and goals. “The accounting and auditing profession is vital in creating a favorable business environment, and this congress acts as a catalyst for the profession’s development,” he concluded.
Željko Bogetić, Chief Economist for the Middle East at the World Bank, discussed the pillars of sustainable development, stating that economic growth, social inclusion, and environmental protection are fundamental to achieving sustainability.
