World Bank proposes results based financing instruments for increasing efficiency of public spending, revenue collection

Podgorica, Montenegro (26 March 2014) – The World Bank is preparing two innovative projects in Montenegro, totalling to approximately 50 million USD, with a view to strengthening fiscal and debt management, as well as the Tax Administration's reform in order to increase efficiency of public spending and revenue collection, Ellen Goldstein, the World Bank’s country director for the Western Balkans, announced at today’s press conference following her meeting with Montenegro’s Finance Minister Radoje Žugić.

Highlighting the strength of the partnership between the World Bank and Montenegro, Ms Goldstein noted that this financial institution has been supporting Montenegro in achieving today’s clear signs of economic recovery and growth.

“Over the years, the World Bank Group has engaged to spear economic recovery, following the euro zone crisis, to accelerate economic growth, to extend employment opportunities and to enhance prosperity for all Montenegrins,” she underlined.

Today, in Ms Goldenstein’s words, the World Bank proposes a broader range of instruments to deepen reforms, and support growth and employment. To this end, it has been preparing innovative results based financing instruments.

“Applied to tax administration and fiscal management, this will create greater incentives for the government’s institution to be efficient, transparent and responsive to the citizens,” the World Bank’s country director for the Western Balkans underlined.

The proposed fiscal management programme would reinforce macroeconomic and fiscal planning, as well as the budget and public debt management aimed at boosting the efficiency of public spending, Ms Goldstein explained.

She added that the project of the Tax Administration's reform would increase efficiency of revenue collection, facilitate the tax payers to fulfil their obligations and upgrade the efficiency of the administration in terms of collecting higher revenues, while at the same time reducing burden on Montenegro's taxpayers.

The World Bank’s teams of experts are in Montenegro for the next two weeks to begin preparing the loan support for measurable results in Montenegro’s institutions, namely the Tax Administration, the Customs Administration, the Administration for Inspection Control and the Finance Ministry, Montenegro's Finance Ministry radoje Žugić told the press conference earlier today.

For full Ms Goldstein's statement please click the video link above.