Second part of Cabinet's thematic session concentrates on reforms in health care, public finance, administration

Kolašin, Montenegro (19 April 2016) – The Montenegrin Cabinet ended up earlier today in Kolašin its two-day thematic session entitled "Reforms for Competitiveness – 2020." Today's discussion covered the health care system reform, reform of public finance management and administration reform.

Structural reform in the health system implies improvement of identified weak points within the system in order to achieve financially sustainable health care system, which, in addition to efficiency, provides adequate quality of service to its users. The aim of the reform is to establish a new system with a view to accomplishing economic and financial results.

The measures envisaged in this area are focused on, inter alia, continued advancement of the level of expertise, better management in health care institutions, as well as the reform of the funding mechanisms.

There are two main objectives when it comes to reforming the public finance management: ensuring Montenegro’s willingness to identify, preclude and manage fiscal risks, excessive fiscal deficits and macroeconomic imbalance and structuring the public spending in such a way to stimulate economic development and ensure a better quality of life for all citizens. Key reforms set out in this document concentrates on two areas - the spending and revenue sides.

With regard to the spending side, the proposed measures should ensure the limitation and responsible planning of public spending and public debt management. The reforms are directly linked to reforms in all other areas, namely education, health, labour, social welfare, pension system and administration. The aim of all these reforms is to improve the quality and efficiency of public services.

Revenue side-related measures should affect the lowering of tax rates (abolition of the crisis tax on income), further simplifying the tax framework, particularly in terms of tax payment procedures, strengthening revenue institutions’ capacity, as well as linking tax and spending policies.

Strategic planning in the field of macroeconomic and fiscal policy and economic evaluation of society through economic development, investment and sustainable economic growth requires the establishment of a consistent system of public administration covering state administration, local government, public services and regulatory bodies, which is also rationalised in terms of its organisation, numerically optimised and efficient. Human resource management is critical for regulatory reform, advancing the business environment and strengthening competitiveness of the Montenegrin economy.

To achieve the objective of sustainable economic growth and overall progress of society requires a rational, efficient and highly motivated administration, while at the same time strengthening the system of monitoring and accountability, ranging from management level to each position in the administration.

The proposed administrative reform measures are designed to provide better organisational, functional and technical connections within and between the competent authorities, high-quality and efficient exchange of data and information, efficient procedures, thus better serving interests of companies, the Montenegrin citizens and foreigners.

Concluding a two-day work, Prime Minister Đukanović voiced pleasure with the content and quality of the discussion and agreed solutions and pointed out that the Government should focus its efforts towards achieving the reform objectives in a responsible and consistent manner.