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RESPONSE: Mijović neither has knowledge nor can read

Published on: Dec 3, 2017 7:00 PM Author: PR Service

Dejan Mijović from the political party URA made false allegations aimed at deceiving the public regarding the Government's policy and the results of the Government's economic policy. For the sake of complete and correct information to the public, we announce:

Mijović's allegations published by RTCG and Vijesti "that the state ran out of money," that it "doesn't have access to loans", and that it "will tighten citizens' belt" are inaccurate, ungrounded and malicious.

The Government should not bother itself denying Mijović's allegations, given the fact that the reality already has done that. The facts, therefore, just need to be recalled.

If the state "had run out of money," it would not have been able to provide salaries, pensions, social benefits, education financing, health care, etc. Not only that this did not happen, but in addition to regular payments, the Government increased pensions and social benefits, which denies Mijović's false allegations. At the same time, it's untrue that Montenegro "does not have access to loans" because our confirmed credit rating with improved outlook creates the preconditions for even more favourable refinancing of existing loans.

It is also an absolute false political allegation that the Government will "reduce salaries, pensions and social benefits, and increase all types of taxes, and that for a long period of time there will be no money for any development project except for the costly 40 km of motorway that leads nowhere". The capital budget for 2018 foresees the financing of projects worth EUR 287.7 million, of which 210 million are foreseen for the construction of the priority section of the motorway. The remaining 77.7 million are intended for projects of the Directorate for Transport (€ 35.1 million) and the Directorate of Public Works (€ 42.6 million). The largest part of these allocations refers to the Northern Region. Therefore, for development projects, we have allocated large sums about which the public is timely and thoroughly informed. The figures stated in the Draft Law on the Budget of Montenegro for 2018 are contrary to the false and blanket statement. The text of the proposed budget has been available to the public for more than two weeks.

His contemplations and qualifications that the "motorway leads to nowhere" Mijović and his URA should explain, first of all, to the citizens of the Northern Region who are in need of a motorway. The motorway project, in the construction phase, already has positive effects on the economy, and alongside other development projects in energy, tourism and agriculture contributed to strong economic growth and increased employment. This is also evidenced by data of international institutions and organisations, and not by blanket and malicious statements without any justification.

Draft Law on the Budget for 2018, as well as the medium-term Fiscal Strategy of the Government – which Mijović should first read in order to be qualified to comment something – is the proof that his allegations that the Government will reduce salaries, pensions and social benefits in the coming years are absolute untruth. Not only that the Government will not reduce pensions and social benefits, but has increased them in 2017. Pensions will be increased in 2018. In addition to harmonisation of pensions, other forms of support for the oldest population were provided. Harmonisation of pensions will be continued after 2018.

Also, it is not true that reduction in salaries of public sector employees is foreseen. Not only is this not foreseen, but the level of earnings of employees in the public sector will be preserved, with the aim of affirmation of the outstanding results of the employees in education and health. Moreover, for the first time, a special award fund for teachers, professors, doctors etc. was provided for achieving outstanding results in these important areas.

When it comes to tax policy, we have preserved the tax rates that have the greatest impact on Montenegro's competitiveness as an investment destination, i.e. tax rates on income and profit. We continue to look at the possibilities of reducing the fiscal burden of work.

That the competitiveness of the Montenegrin economy has improved – contrary to the political statements of Dejan Mijović – show the data of international organisations, such as the World Bank's Doing Business and the World Economic Forum Report for 2017-2018. At the same time, Montenegro recorded a continuous increase in net inflows of foreign direct investments. Mid-term projections of macroeconomic trends in Montenegro – done not only by the Government, but also by international institutions, such as the IMF, the European Commission and the World Bank – point to an improvement in macroeconomic indicators in the medium term, which will contribute to the growth of competitiveness and investment.

We use this opportunity to deny one more untruth said by Dejan Mijović that "the management of state finances has been taken over by international financial policemen IMF and the World Bank". When it comes to so far denied allegations, Mijović dropped the ball. But, he shows that he can do better and more: he mistook the country he is talking about. Credit arrangements with the IMF have countries in the region such as Albania and Serbia, but not Montenegro. Montenegro does not have a credit arrangement with the IMF nor does it negotiate it since the World Bank and the Development Bank for years approve development credit support to our country as a member.

Mijović, therefore, can neither read nor knows how to.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO

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