Montenegro’s parliament adopts budget revision

By bne IntelliNews June 24, 2020

Montenegro’s parliament on June 24 adopted a budget revision proposed by the government to reflect the lower income and higher spending due to the coronavirus (COVID-19) pandemic, setting the deficit at 7.3% of GDP.

The revision was expected as Podgorica is implementing measures to soften the impact of coronavirus on its economy.

Finance Minister Darko Radunovic told MPs the government has projected an economic contraction of 6.8% in 2020 and a 4.9% growth in 2021.

Tourism revenue, which is the main contributor to GDP growth, is estimated to fall by 40% in 2020, resulting in 17% lower budget revenue, which is estimated at €1.7bn.

Budget spending is seen to be by 3% lower from the initial plan and is set at €2.04bn. The government expects lower spending as it has redistributed funds to meet the higher spending.

Despite that, the government will need to find €877.5mn to patch the budget gap. Public debt is expected to reach 82.5% of GDP in 2020.

FDI is also seen falling, by 5.4% of GDP.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss