Press release from the 57th Cabinet session

The Montenegrin Cabinet held its 57th session, chaired by Prime Minister Milojko Spajić.

The Cabinet adopted the Draft Budget Law for 2025 and the Draft Decision on Borrowing for 2025.

The budget includes a projected surplus in current budget expenditures, meaning that borrowing will be limited to repaying old debts and financing capital projects. This fulfills the “golden rule” of budgeting, ensuring that the state finances all current obligations through current revenues. Projected budget revenues amount to €2.886 billion, marking an increase of €102 million or 3.7% compared to the 2024 plan. This is despite a planned reduction in pension and disability insurance contributions as part of tax relief reforms. Planned budget expenditures total €3.164 billion, resulting in a projected deficit of €278 million, or 3.5% of GDP, consistent with the fiscal strategy. The budget includes measures to improve living standards under the “Europe Now 2” programme: raising the minimum salary to €600 and €800, increasing salaries for all employees, with an average salary target of €1,000, raising minimum and average pensions, enhancing allowances for professional training and student loans. Public finance stability is maintained, with the budget deficit averaging 3.3% of GDP over the next three years and net public debt kept at 61% of GDP. This aligns with fiscal responsibility criteria. The capital budget is set at €280 million for projects with a total estimated value of €3.7 billion.

The Cabinet adopted the Trade Facilitation Programme 2024–2026, along with a Framework Action Plan. This programme aims to eliminate administrative inefficiencies in cross-border goods traffic, enhancing Montenegro's export potential and economic competitiveness. Key objectives include: simplified and transparent procedures, upgraded technological infrastructure, improved inter-agency coordination to support economic growth and align with international standards. The programme is a response to international and national commitments arising from Montenegro’s integration processes and establishes a unified agenda for all relevant authorities. The Framework Action Plan outlines 35 activities, primarily under the jurisdiction of the Customs Administration and the Administration for Food Safety, Veterinary, and Phytosanitary Affairs.

The Cabinet adopted Amendment No. 3 to the agreement for the rehabilitation and improvement of the M-2 road segment Rožaje–Špiljani. The amendment addresses unforeseen discrepancies between initial geodetic and geological studies and actual site conditions, requiring changes to technical solutions and additional works. Total additional costs amount to €4,788,931 (excluding VAT) or €5,794,606 (including VAT). Funds for these works have been secured through the revised 2024 budget.

The Cabinet established the Council for Hydropower Development, chaired by Minister of Energy Saša Mujović. The Council’s responsibilities include coordinating activities to leverage Montenegro's hydropower potential for electricity production and analyzing key issues related to hydropower development.

The Cabinet adopted the Energy Balance of Montenegro for 2025, which includes: Electricity balance, Coal balance, Balance of oil, oil derivatives, and biofuels, Annual analysis of renewable energy contributions. Prepared by the Ministry of Energy, the balance is based on data from: Electric Power Company of Montenegro (EPCG), Montenegrin Power Distribution System (CEDIS), and Montenegrin Transmission System (CGES) for electricity, Coal Mine Pljevlja for coal, and oil companies for petroleum products. Ensuring the availability of essential energy resources is critical for Montenegro’s planned economic and social activities in 2025. All energy entities and relevant authorities have been urged to fully implement the measures outlined in the balance.