SD Proposes Amendment to Decrease Borrowing by $200 Million
Photo courtesy of the Social Democrats of Montenegro
Members of Parliament from the Social Democrats (SD) have put forward an amendment to the Proposal for a Decision regarding Montenegro’s Debt, suggesting a reduction of the possible debt for this year by EUR 200 million.
The statement from the SD indicates, “The Government’s Draft Decision on Borrowing indicates that the shortfall in financing the budget for this year stands at EUR 1.14 billion, allowing the state to borrow up to EUR 900 million to cover this deficit. In exceptional cases, the state may also borrow an additional EUR 500 million, leading to a total potential debt of EUR 1.4 billion.”
Through the proposed amendment, SD MPs are advocating for a reduction of this borrowing cap from EUR 500 million to EUR 300 million, paired with a call for more effective management of public finances and the rationalization of non-essential expenditures.
The SD have highlighted that the Fiscal Strategy anticipates the state borrowing three billion EUR over the next three years, predicting an increase in Montenegro’s net public debt by 1.2 billion EUR, rising from 4.3 billion last year to 5.5 billion EUR by 2027.
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