- Government of Montenegro
DPM Simović: This was Government's successful year...
DPM Simović: This was Government's successful year even though we did not choose to ingratiate by making populist decisions
Podgorica, Montenegro (22 November 2017) -- Deputy Prime Minister Milutin Simović said while making a guest appearance on the Television of Montenegro that the first year of work of the 41st Government of Montenegro was a year of hard, responsible, dedicated work of all members of the Government of Prime Minister Duško Marković, adding that success is already seen even though the Government did not choose a model to make populist decisions in order to ingratiate because of the short-term political effects.
"It was the year of work supported by years of reform efforts and achieved results, the year of intensive content, two-way communication with social partners, and the investment community, both domestic and foreign, and the year of direct communication with citizens throughout Montenegro, especially in the North region. It was the year in which we made real, decisive and responsible decisions," the Deputy Prime Minister for Economic Policy and Financial System said.
The Deputy Prime Minister recalled that the Government adopted a budget for this year at the very beginning of its work, as well as a public debt reduction plan.
"And at that moment, and throughout the year, we did not have a dilemma; we did not choose a model of making populist decisions, a model of political ingratiating because of some short-term political effects. Our decision was to lead the country responsibly, with the calculation that the effects will come in the medium term," the Deputy Prime Minister said, adding that, however, good results came after a short period of time.
"And here, after a year, we can say now that this year was a very economically successful year, that during this year we achieved significant results in the part of the financial consolidation, that this year we managed to intensify the implementation of the capital budget, and especially the most important capital project such as motorway, that this year we managed to fully service all the obligations from the package of social benefits, salaries, pensions, regular servicing of all public finances and the regular performance of all international obligations that were in front of Montenegro. And we are confident that this is a good basis for continuing with economic growth in the next, also challenging year, in order to have a more direct, more immediate effect with regard to employment in relation to the further process of harmonisation of social policy in order to make it even more equitable, in view of the need to securely align pensions in the coming period. So, this is a year of encouragement and a year that gives us additional obligations for the next challenging year," Deputy Prime Minister Milutin Simović noted.
Commenting on the implementation of fiscal consolidation and encouragement measures to persevere in its policy that the Government receives from relevant international addresses, DPM Simović recalled that quite a bit contradictory comments on this part of the Government's policy came from those who just "celebrate year of non-working".
"Only words of criticism are heard, only political populism is heard. There is no realistic critique that every government would welcome, even this, which would be incentive, which would indicate in relation to the needs of setting certain policies. There is none. It is heard from studies where sometimes a person can not recognise who is a guest, and who is the show host, it is heard from some party press statements. But this is one dimension, this is typical for our political environment and I hope that it will change," DPM Simović said.
As the Deputy Prime Minister noted, in such conditions of non-objective analyses, positive assessments of international institutions that the Government manages the economy well and implements a responsible credible plan for financial consolidation are very encouraging, as well as the World Bank’s forecasts for the economic growth rate to 4.2 percent.
Answering the question about the growth of a higher VAT rate from 19 to 21 percent, DPM Simović pointed out that this was the most balanced measure, that it has its equal distribution to all consumers, and in particular bearing in mind that it maintained a lower VAT rate of 7 percent, which includes a wide package of basic food products, that the zero VAT rate will be retained for healthcare services, sports and education services, and that the 21 percent rate is competitive in relation to many VAT rates in the region and beyond. He said the Government seriously analyses what else can be done to depreciate, as far as possible, any potential dangers that exist in every economy when there is an increase in the VAT rate.
The Deputy Prime Minister for Economic Policy and Financial System said that the example of the construction of the motorway showed that the Government has a vision and that the awards for this have come from significant international addresses.
PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO