Budget means development to government, but debt to opposition

The Montenegrin Parliament is discussing the Budget Law for 2016 amounting to 2.125 billion euros, 162 million euros higher than this year’s. For the members of DPS, BS and LP, the budget was well planned and has a social and development character.

On the other hand, the opposition is worried by the public debt which will be increased in 2016 to approximately 64 percent of GDP, as well as the planned new borrowing of about 688 million euros.

As explained by the Deputy Prime Minister for economic policy Vujica Lazovic, 773 million euros of the total amount of the budget refers to current spending, which is 94 million more than in 2015.

It is 335 million in relation to capital spending, or 50 million more. 626 millions refer to the budget of state funds, which is 23 million more than this year. 391 million euros, or 5 million more than this year, refers to the financing transactions, or refinancing part of the maturity of the public debt.

It is expected that GDP will be 3.87 billion euros, with real growth of 4.1 percent.

As Lazovic stated, the economic policy objective is to support the development and creation of new values. He said that the priority will also be the increase in public sector wages.

“In addition, borrowing of 688 million euros will be necessary in 2016, of which 391 million relates to the repayment of earlier debt, 255 million of the debt for highway construction, 36 million to cover the budget deficit and six million for the settlement of the debt of the Fund for Health”, said Lazovic.

Izvor: RTV Montenegro