In his introductory statement, the Minister of Finance said that a set of macroeconomic assumptions has been defined for 2016, and that projections for 2016 were based on those assumptions, including, inter alia, the following: the continuation of the intensive fight against grey economy with a special focus on: the labour market and market of excise products; reducing tax rate on personal earnings exceeding 720 euro a month in gross terms, from 13% to 11%; the amount of value added tax of 19%, while maintaining low tax rates (0% to 7%) on certain products; optimisation of the current spending; pension adjustment in accordance with the current and projected macroeconomic indicators influencing the amount of pension; intensifying activities on the section of highway Smokavac - Mateševo; increasing fuel fees, etc. In addition, he emphasised that the continuation of consolidation of the public finances was the most important element of fiscal policy in 2016, and the criteria of fiscal responsibility defined by the Law on Budget and Fiscal Responsibility will be exceeded n 2016, which will cause the need for drafting a recovery plan.

The following is planned: gross domestic product (GDP) in the amount of 3,868 billion euros; the budget for 2016 in the amount of 2,125 billion euros (54,93% of GDP); deficit in the amount of 273,9 million euros (7,1% of GDP); capital budget in the amount of 334,8 million euros (8,65% of GDP), and debt repayment will amount around 400 million euros (around 10%).

In line with Article 67 of the Rules of Procedure of the Parliament of Montenegro, representatives of the following took part in the meeting: State Audit Institution, Central Bank of Montenegro, Montenegro Business Alliance, Chamber of Economy of Montenegro, Union of Employers of Montenegro, Association of Montenegrin Managers, Confederation of Trade Unions of Montenegro, Union of Free Trade Unions of Montenegro, NGOs: “Institute Alternative”, “Civic Alliance”, “Association of Youth with Disabilities of Montenegro”, who presented their positions on planned budgetary revenues and expenditures for 2016.

During the discussion, the participants, inter alia, pointed out the tendency of growth of public debt and public spending, vulnerability related to the maintenance of the real sector, need for implementing the structural reforms in the field of health care, education and pension system, as well as the necessity for providing incentives for development of economy.

Students of the Faculty of Economics at the University of Montenegro followed the meeting, in line with Article 67 of the Rules of Procedure.

MP Ms Jelisava Kalezić participated in the meeting, in the capacity of interested party.

The continuation of the 124th meeting will be held on 18 December 2015, starting at 10:00 (Blue Room).