Statement of the Deputy Prime Minister and Minister of Finance, Igor Lukšić, on the occasion of adopting the Law on Amendments to the Budget Law of Montenegro for 2009, with the explanatory note.

Due to the consequences of the crises, we decreased budgetary consumption revenues and expenditures. By the end of the current year, our expectations are that the source revenues will amount to 1,250 billion Euros which is by 216 million Euros less than planned. We are hoping for success in retaining the zero economy growth rate and by applying these changes in the budget we are hoping for success in retaining the public finance stability. We have planned budgetary deficit of around 2,6% of GDP or 90 million Euros in this year. Borrowings should be made only in addressing the development, or the realization of the set of capital budget projects. The capital budget is projected to 130 million Euros instead of planned 215 million Euros. On the basis of all items, excluding subsidies which will be used for amortizing the crises of small and medium sized enterprises, as well as the citizens, we have made corrections. The support to companies including the Aluminum Plant (KAP) is also planned, which will not affect the increase in expenses. Expenditures for material and services decreased by approximately 15%, decrease in current maintenance by 8,5%, rents by 18,3%, capital expenditures by approximately 34%. Besides subsidies, only funds for severance pay have increased, because its planned the intervention of the Government in resolving a number of social issues in the economy. Regardless the rebalance, cost - saving measures will continue. To simplify, we had seen the space for additional savings. Todays rebalance we projected at zero economy rate, and the inflation of around 3%. Privatization revenues remained at 35 million Euros. One part of these revenues that we are expecting in this year, we are planning to engage in forth quarter. We are planning for privatization by the end of this year.