Budget records EUR 101 million more revenues in 2013, Government projects economy growth of 3.6% in 2014

Podgorica, Montenegro (21 November 2013) –  Government corrected its earlier projections and now forecasts Montenegro's economy growth of 3.6% in 2014, primarily due to the launch of major development projects, Finance Minister Radoje Žugić told the press following the Cabinet's session earlier today.

He also noted that urgent fiscal reforms the Government introduced resulted in the fact the Montenegrin budget has recorded about EUR 101 million more revenues in 2013 compared to the same period last year. This positive trend, in Minister Žugić’s words, makes a contribtion to reduce the budget deficit and level of the public debt.

The continuation of public consumption consolidation and pursuing an accountable and restrictive fiscal policy, within the existing macroeconomic framework, will be the main guidelines of the Government’s economic policy in 2014, the Finance Minister announced. He explained that public consumption has to be adjusted to tax capacities of the country’s economy and its citizens, and its consolidation is aimed at boosting economic growth in order to decrease budget deficit and public debt, preserve the economy’s competitiveness and improve the standard of living.

Fiscal adjustment’s measures do not imply only higher taxes. Although Montenegro has increased the higher rate of VAT to 19% and introduced the crisis tax, the Government remains committed to pursuing consistent and competitive fiscal and tax policies, Montenegro’s Finance Minister underlined.