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The government would not be able to pay salaries and pensions without debt

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The government can’t cover salaries and pensions without incurring debt.

Andjušić, Photo: Biljana Matijašević

The financial situation in Montenegro is more concerning today than what the average citizen perceives, stated Mihailo Anđušić, MP from the Democratic Party of Socialists (DPS), during a press conference.

“The Minister of Finance’s statement underlines this concern, warning that Montenegro could face bankruptcy if the debt isn’t realized. This emphasizes our argument that the government and the majority are currently prioritizing the Debt Decision over the Budget Law. We’ve reached a critical point where failure to realize this debt could hinder the payment of salaries and pensions in Montenegro. The repercussions of the Europe Now 1 and 2 programs are manifesting sooner than expected,” Anđušić remarked.

He emphasized that the DPS supports the increase of salaries and pensions, but the method by which this increase was achieved raises significant economic concerns.

He noted that the government has revealed that Montenegro is currently dealing with a deficit of 308 million euros, despite earlier claims of a budget surplus.

“The first signs of poor VAT collection revenues came after many foreign nationals left the southern regions of our country, exposing Montenegro’s vulnerabilities… And ultimately, it is the citizens of Montenegro who are feeling these effects the most,” he said.

He added that residents of Podgorica have recently seen their water bills rise by 41 percent.

In Danilovgrad, the price of water has surged by 50 percent.

“This raises the question, albeit with some justification for the boycott of shops and public attitudes toward them, why shouldn’t we also boycott the Water Supply, the Public Revenue Administration, and similar services?”

He mentioned that citizens are now facing nearly double prices for services in restaurants, hair salons, and shoe stores, attributing this to the state’s hike in taxes.

He believes a viable solution to the inflation and other challenges facing citizens would be a reduction of excise taxes on fuel by up to 50 percent, along with a lowered VAT base on essential food items.

“However, Montenegro cannot implement these changes without risking insufficient revenue to support the unrealistically inflated wages and benefits,” he stated.

In response to a journalist’s query, he admitted uncertainty around the schedule for the budget vote, noting that even the majority is often left uninformed, as Speaker of the Parliament, Andrija Mandć, only advises them shortly before an agenda item is to be discussed.

“It appears the debate is ongoing, with various procedures still to be fulfilled, including sessions of the working bodies, primarily the Economy, Finance, and Budget Committee. A considerable number of amendments are being circulated these days, likely to distract citizens, but I suspect the plenum’s debate could conclude today. Our participation in this session has been hindered, and we will later communicate our decision regarding voting, a right we hold,” Andjušić added.

The Parliament of Montenegro is currently reviewing the Draft Budget Law for 2025.

When addressing whether the DPS would support Nikola Jovanović from the “Budva Our City” list as the next mayor of Budva Municipality, Andjušić said he was uncertain about his colleagues’ decisions.

“We’ll see the outcome of today’s session,” he replied.

Regarding reports from “Vijesti” that suggest the DPS has been subtly regaining power in Budva since summer, he dismissed these claims as speculative.

“Any agreements we reach should not be gradual or based on a phased approach. As a responsible party, we aim to handle this matter seriously, without adopting experimental strategies or minority support. If we do endorse a position, we will convene to discuss how our role would fit into the government formation in Budva,” concluded Andjušić.

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