Press release from the 82nd Cabinet session

The Montenegrin Cabinet held its 82nd session, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Draft Law on the Final Account of the Budget of Montenegro for 2024. During the discussion, it was emphasized that last year saw a steady increase in budget revenues, primarily reflecting the growth in economic activity and living standards, due to a rise in disposable income. According to preliminary data from the Statistical Office, Montenegro’s gross domestic product (GDP) for 2024 is estimated at a nominal amount of €7,459.2 million.

Current revenues for 2024 amounted to €2,714.86 million, which is 0.05% less than planned and represents 36.4% of GDP. It is important to note that nearly all categories of current revenues recorded growth compared to both the planned amounts and the previous year—excluding one-off revenue items from 2023.

The structure of current revenues was as follows: tax revenues accounted for the largest share with 72.5% or €1,968.6 million; social contributions made up 21.5% or €584.7 million; other revenues comprised 3.4% or €92.2 million; fees accounted for 1.9% or €53.1 million; and administrative charges made up 0.6% or €16.2 million.

Budget expenditures in 2024 totaled €3,003.3 million, accounting for 40.3% of GDP. The largest share of budget spending was allocated to social benefits (33.6%), which amounted to €1,008.2 million—22.2% more than the previous year—primarily due to increased pension and disability insurance payments following the rise in the minimum pension. Gross wages represented the second-largest expenditure item (22.48%), totaling €675.2 million, which is 2.8% less than projected and 5% higher than the previous year. These were executed in accordance with applicable legislation, collective agreements, and actual payroll calculations.

Capital expenditures in 2024 reached €299.1 million—16.2% higher than budgeted and 25.3% higher than in the previous year—due to greater implementation of planned capital projects.

The cash deficit of the 2024 budget stood at €247.5 million, or 3.3% of GDP. After adjusting for outstanding liabilities from previous years (not considered loans), the adjusted cash deficit amounted to €258.8 million or 3.5% of GDP.

In 2024, debt repayments totaled €495.6 million. Together with the adjusted cash deficit, expenditures for securities, loans, and increased state deposits, this resulted in a funding gap of €976.1 million. This amount was financed through domestic and foreign borrowing (€942.1 million), loan repayments (€20.3 million), asset sales (€2.3 million), and a net increase in obligations of €11.3 million.

As of 31 December 2024, total public debt (excluding deposits) stood at €4,514.80 million or 60.53% of GDP. Including deposits, public debt was €4,129.44 million or 55.36% of GDP.

The Cabinet adopted the Draft Law on the Recovery and Resolution of Investment Firms, along with the Public Consultation Report. The law introduces the necessary conditions for applying resolution powers and tools in line with the revised EU Directive, significantly enhancing the regulatory framework for addressing troubled investment firms. To ensure full alignment with the EU legal framework, the Draft also includes provisions that will apply upon Montenegro’s accession to the European Union. These will further strengthen the system for preventing and resolving difficulties in investment firms that are part of EU-based corporate groups. The law sets out detailed mechanisms for protecting investors and creditors, mitigating risks to the country’s financial stability, and enabling timely and efficient recovery of investment firms in crisis situations. The primary objective is to safeguard the stability of Montenegro’s financial system by establishing a legal framework for resolving insolvency and financial distress in a manner that minimizes negative impacts on the market and economy. It introduces instruments such as early intervention, internal resolution, recovery plans, and the establishment of a Resolution Fund—providing a comprehensive framework for preventive measures and effective action during financial crises.

The Cabinet adopted the Draft Amendments to the Spatial-Urban Plan of the Municipality of Plužine, along with the Proposal for the Public Consultation Programme. The original Plan was adopted in 2012. Based on the Municipality’s initiative dated 22 March 2023, there arose a need to designate areas for solar and wind power plants, business zones, and to revise specific local studies that require new planning considerations. Accordingly, and pursuant to Article 218 of the Law on Spatial Planning and Construction, the Government decided on 26 May 2023 to initiate the amendments to the Plan. The objective is to enable a more rational use of resources in line with sustainable planning principles and the national development strategy for northern Montenegro, which prioritizes tourism and energy. The amendments will apply to the entire territory of the municipality, covering approximately 854 km².