- Government of Montenegro
Press release from 176th Cabinet session
Please note: The page below represents the archived content relating to the previous Government of Montenegro. Some of the information might be inaccurate or outdated.
Archive
Press release from 176th Cabinet session
Published on: Jun 5, 2020 • 5:34 AM Author: PR Service
Podgorica, Montenegro (4 June 2020) – The Montenegrin Cabinet passed, at its 176th session, chaired in the first part by Prime Minister Duško Marković and in the second by Deputy Prime Minister for Economic Policy and Financial System Milutin Simović, the Draft Law Amending the Law on Budget of Montenegro for 2020 and decided to submit the document for adoption by abbreviated procedure, to the Assembly of Montenegro.
Noting that the coronavirus pandemic is a shock to the economy of the whole world, that during the past two months the entire world economy has stopped, and that there is practically no country whose economy does not suffer, Montenegro started adjusting to the new circumstances.
"Almost all countries of the world are doing what we are doing - they are adjusting the budget to the new circumstances," Minister of Finance Darko Radunović pointed out at the session and at the press conference, following the Cabinet session.
The Government is entering the rebalance with good results in 2019 determined to service all obligations, provide regular salaries, pensions and social benefits, continue adjusting pensions, strongly support the economy and entrepreneurs, as well as to continue capital development projects, it was noted at the session.
The Ministry of Finance estimates that foreign direct investment will fall from 7% of GDP in 2019 to 5.4% this year, that the original budget revenues will be lower by EUR 349.37 million, or 17%, and that the planned level of the budget deficit for this year amounts to EUR 335.89 million or 7.3 % of the estimated GDP, in relation to the originally planned.
The real decline in GDP, due to the coronavirus pandemic, this year is estimated at 6.8%, while a gradual and partial recovery and economic growth of 4.9 %is expected in 2021.
Pursuant to the budget revision, the Cabinet passed the Proposal of the Decision amending the Decision on Borrowing for 2020, which defines the missing funds and ways of financing the budget so that, in addition to deposits, the missing funds of EUR 338 million, will be allocated through international and domestic borrowing market. The Cabinet also passed the Information on baselines for negotiations with the International Bank for Reconstruction and Development (IBRD) for concluding an arrangement for "Supplementary loan for financing development policy - resilience of the fiscal and financial sector" and the Draft Law on Final Account of the Budget of Montenegro for 2019.
The Cabinet adopted Report on the completed negotiations on the conclusion of the Agreement between the Government of Montenegro and the Government of the Republic of France on the activities of the French Development Agency, the institution "Proparco" and "Expertise France" in Montenegro. The Cabinet has accepted the text of the Agreement, whose aim is to specify the rules applicable to the activities of the AFD Group and Expertise France and to the establishment of a representative office in Montenegro. It defines in particular the legal, tax and financial conditions applicable to the status and activities of the AFD Group and Expertise France and its representative office in Montenegro.
The Cabinet also adopted Report on Public Procurement for 2019. The report is designed to provide a clear overview of the objectives of public procurement policy, the legislative framework, the presentation of data on public procurement in 2019, as well as activities in the process of joining the European Union. The data indicate that those obliged to apply the Law on Public Procurement in 2019, contracted a total of EUR 715.649, 738.91 for procurement, of which public procurement amounted to EUR 608.224, 346.53 and electricity and coal for EUR 107.425, 391.96. The share of procurement and public procurement has a significant share in the gross domestic product (GDP) in Montenegro, with a share of procurement in 2019 of 14.58 % of GDP and a share of public procurement of 12.39 % of GDP. It was particularly emphasized that, in relation to the comparative data of public procurements in previous years, 608 million public procurements in Montenegro in the previous year, represent the largest amount implemented through this system since 2007, when the area of public procurements is monitored. The largest number of procedures was conducted through an open procedure, as the most transparent procedure that achieves the highest level of competition in the amount of 83.46 %. The number of procedures conducted through small value procurement amounts to 13.18 %, of urgent procurement to 2.87 % and of the negotiated procedure without prior announcement of the invitation for public bidding to 0.43 %. An information that in the part of creating preconditions for stronger economic development, the public procurement system is dominated by 90 % of domestic bidders, is of particular importance.
The Cabinet also passed the Decision on termination of the Decision on opening the Virpazar border crossing for international lake passenger traffic, given the fact that an Agreement was adopted, at the joint session of the Government of Montenegro and the Council of Ministers of the Republic of Albania, held on 3 July 2018, on opening the joint border crossing Ckla (Montenegro) - Zogaj (Republic of Albania) for international road and lake passenger traffic, where, following the construction of the border crossing and connecting of the road, an entry/exit lake and road border control will be performed.
For full press release in Montenegrin, please click here.
PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO
PHOTO AND VIDEO: https://flic.kr/s/aHsmNCvwwH
Related articles:
Prime Minister Spajić presents Barometer 26 Nov 21, 2024
Is this page useful?