Press release from 80th Cabinet session

Podgorica, Montenegro (7 June 2018) -- At today's 80th session, the Montenegrin Cabinet passed the Draft Law on the Final Account of the Budget of Montenegro for 2017.

According to the preliminary data of the Statistical Office in 2017, the real GDP growth rate was at the level of 4.4%, and the GDP amounted to EUR 4,237.00 million. The discussion emphasised that the Government has objective reasons for satisfaction with the achieved results in the realisation of programme goals during the past year despite the numerous risks and unfavourable environment that it faced at the beginning of the mandate. It was estimated that the Government, focusing on sustainable and inclusive economic growth that will contribute to reducing the country's development gap in relation to the EU average and increasing the quality of life of all its citizens, successfully implemented a number of measures to strengthen macroeconomic fiscal and financial stability of the country, as well as economic policie' measuress aimed at resolving structural problems in the economy, i.e. removing key obstacles to improving the country's competitiveness and increasing potential economic growth in the medium and long term.

Public spending in 2017 totalled EUR 2,012.5 million and accounts for 47.48% of GDP. Current public spending (total public spending reduced by total capital expenditure) amounted to EUR 1,714.46 million, or 40.46% of GDP.

Current revenues with returns on loans and donations in 2017 amounted to EUR 1,566.27 million, accounting for 36.96% of GDP. Tax revenues of the central budget are higher by 9.55 percent compared to the previous year or 84.63 million euros.

Net state debt at the end of the year amounted to EUR 2,556.98 million or 60.34% of GDP.

Concluding the discussion, Prime Minister Marković said that 2017 was very successful, but also warned that in the coming period, the budget's revenue and expenditures should be taken into account, and that the irrational and unjustified consumption of public funds will not be tolerated.

Cabinet also passed the Law on Recognition of Professional Qualifications for Performing Regulated Professions that will enable persons who have acquired their education abroad to be employed in our country under the same conditions as the Montenegrin citizens. Furthermore, the law ensures that professional qualifications for performing regulated professions acquired in Montenegro are valued in the European Union as well. It was concluded that by enacting this Law, the entire system of recognition of foreign qualifications will be completed.

The Government adopted the Decision on the number of students enrolled in the first year of basic studies of the University of Montenegro for the study year 2018/2019 that are financed from the Budget of Montenegro and gave consent to the Student Enrolment Contest in the first year of the basic studies of the University of Montenegro for the academic year 2018/2019. The Student Enrolment Contest in the first year of undergraduate studies envisages 3.501 place for students to be financed from the Budget. The Government agrees with the proposal of the University of Montenegro to increase, in order to implement the principles of affirmative action, the total number of places in each study programme by 1% for persons with disabilities and members of the minority community of Roma and Egyptians.

The Cabinet approved the decision on the number of students for enrolment in the first year of basic studies at the Faculty of Montenegrin Language and Literature for the academic year 2018/2019 who are financed from the Budget of Montenegro and gave approval to the contest for the enrolment of 40 students.

Today’s Cabinet session approved the Action Plan for Implementation of the Regional Development Strategy of Montenegro for the period 2014-2020. For the implementation of the Strategy in 2018, investments of a total value of EUR 794,891,344 are planned. State budget funds - 41% are dominant in the structure of the sources of financing, with the largest investment related to the continuation of the construction of the priority section of the Bar-Boljare motorway, which amounts to 199,273,000 euros in 2018. The plan is based on three key development priorities at the national level, defined by the strategy - achieving smart, sustainable and inclusive growth, which are further organised through a sectoral approach. For each priority area, at the level of all three regions, measures are defined that contain specific activities, programmes and projects necessary for the realisation of the Regional Development Strategy in the given area. Of the planned investments, EUR 418.9 million were allocated (53%) will be allocated to northern region, 193.4 million (24%) for the central regon, and 182.5 million euros (23%) for the coastal region.

Today’s session adopted the Information regarding the request of the company "Karisma Hotels Adriatic Montenegro" for granting approval for establishing a first-class mortgage over the facilities of HTP "Ulcinjska rivijera" AD, Ulcinj, in accordance with Article 7.6.4 of the Lease Agreement. Having in mind the contractual possibilities, as well as the entire documentation, with the Pricewaterhouse Coopers Report, confirming that carrying out the project activities in the field takes place in accordance with the Investment Programme in terms of the dynamics and the amount of invested funds, the Government, in its capacity as the Lessor, gave its consent to the request of the company "Karisma Hotels Adriatic Montenegro."

The Government was informed that there is no indication of further growth in energy prices on the global market.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO