Finance

Budget is a financial plan based on the annual estimates of receipts and expenditures. The budget is adopted for the fiscal year and is valid during the year for which it is passed. The fiscal year is the calendar year. The budget includes the current budget, funding transactions, capital budget, budget of state funds and reserves (current and permanent).

Planning and execution of the budget, fiscal responsibility, borrowings and guarantees and other issues significant for the budget of Montenegro and the budgets of municipalities are regulated by the Law on Budget and Fiscal Responsibility (“Official Gazette of Montenegro”, No. 20/14), the systemic law on the budget, adopted by the Parliament of Montenegro of the 25^th Convocation, at the Second Sitting of the First Ordinary (Spring) Session in 2014, on 14 April 2014. The Law on Budget (“Official Gazette MNE”, No. 40/01 and 71/05 and “Official Gazette MNE” No. 12/07, 53/09 and 49/10) has ceased to be valid on the day of the entry into force of the new Law.

The new law introduces novelties related to: fiscal policy and accountability, responsibility of budget executors and measures, inspection and penalty provisions.

In line with European Union acquis, the numerical fiscal rules envisaged by criteria from Maastricht have been established, relating to the rules on deficit and public debt, and the mid-term budget framework has also been introduced. The limit of maximum deficit at the level of 3% of gross national product has been defined, i.e. the limit of maximum level of indebtedness at the level of 60%. Furthermore, the Law envisages the fiscal strategy to be proposed by the Government for the period of its mandate, and adopted by the Parliament. This document establishes main fiscal goals that are to be achieved in the mid-term period and it is a basis for planning the mid-term and annual policies. This systemic law defines the concept of budgetary inspector, his/her scope of work and his/her competences. Additionally, punitive measures have been established for the acts contrary to the provisions of the Law, and depending on the offense - the fine that the person responsible is obliged to pay is prescribed, in the amount of 200 – 1,000 euros for minor offences and 400 – 4,000 for serious offences.

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The Parliament of Montenegro adopts the budget and the final budget statement (Article 82, paragraph 1, item 5 of the Constitution of Montenegro).

In line with the Law on Budget and Fiscal Responsibility, proposal for the law on the state budget is established by the Government, and the Government submits thereof to the Parliament by 15 November. In addition, the proposal for the law on the state budget together with proposals for financial plans and work plans of independent regulatory bodies are submitted to the Parliament, for adoption.

If the law on the state budget is not adopted by 31 December of the current for the next fiscal year, the Ministry of Finance shall, pending to its adoption, approve expenditure financing to consumer units for the current year on a monthly basis up to 1/12 (one twelfth) of actual expenditures of the previous fiscal year.

The Government defines the proposal for the law on the final state budget statement by the end of June and submits it to the State Audit Institution, which then submits the audit report on the final budget statement to the Parliament by 15 October of the current fiscal year, for the previous year. By the end of September, the Government submits to the Parliament the proposal for the law on the final budget statement.

By special laws which regulate the status and position of independent regulatory bodies, the funds that remain in the account of these bodies after the end of the business year for which they were allocated shall be the revenue of the budget of Montenegro (temporary measure until 2016).

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A part of the State budget is also the budget of the Parliament of Montenegro, as one of the consumer units. However, as determined by Article 40 paragraph 3 of the Law on Budget and Fiscal Responsibility, the funds established by the annual state budget law for the Parliament of Montenegro are being used in accordance with the dynamics determined by the Secretary General of the Parliament. The Government of Montenegro, or the line ministry, cannot without consent of the President of the Parliament of Montenegro stop, delay or limit the execution of the budget relating to the Parliament of Montenegro.

In accordance with Article 28 of the Rules of Procedure of the Parliament, the Secretary General among other things, prepares the proposal of the request for providing budget funds for work of the Parliament and the Parliamentary Service, is the order issuer for financial and material business of the Parliament and Parliamentary Service and submits the report on use of the funds to the Collegium of the President of the Parliament and the Committee on Economy, Finance and Budget, upon their request.

In accordance with Article 43 of the Rules of Procedure, the Committee on Economy, Finance and Budget, among other things, considers the budget and the final budget statement, i.e. it is the lead committee for budget issues.

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The 2015 Budget Law of Montenegro, adopted by the Parliament of Montenegro of the 25^th Convocation, at the Seventh Sitting of the Second Ordinary (Autumn) Session in 2014, on 27 December 2014, determines the state budget amounting to 1,963,260,900.49 euros. The state expenditures for 2015 have been planned to amount to 1.564.968.816,12 euros, the source state income to 1,329,179,261.65 euros, while the deficit was planned to amount to 235 789 554.47 euros.

Total funds determined by the work plans for 2015 of six independent regulatory bodies: Agency for Electronic Communication and Postal Services, Agency for Electronic Media, Energy Regulatory Agency, Securities Commission of Montenegro, Insurance Supervision Agency, and Agency for Medicines and Medical Devices, amount to 9,486,855.00 euros. Total surplus of income over expenditures of the six independent regulatory bodies, which will be the revenue of the budget of Montenegro in 2015, has been planned at the level of 483,285.00 euros.

A clearer image of budget data, with illustrations and graphic representation of the state budget, can be found on the website of the Ministry of Finance: budzet.sntcg.com

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The budget funds of Montenegro for 2015 allocated for the Parliament of Montenegro amount to 7,060,889.50 euros, which makes up 0.35% of the total state budget, out of which 3,628,603.00 euros is allocated for the Improving Legislative Infrastructure programme, and 3,332,286.50 for Administration programme.

Overview of items by economic classification for both programmes of the Parliament of Montenegro

Pregled stavki po ekonomskoj klasifikaciji