Zugic: Rebalance in second half of the year, additional 40 million necessary for reimbursements for mothers

#RadojeŽugić #MinistryOfFinance #Mother’SReimbursement

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In second half of the year it will be necessary to propose a rebalance of the budget, said minister of finance Radoje Zugic. He emphasized that for payment of the reimbursements for mothers with three or more children an additional 40 million euros will be necessary.

“Preparation of plan for recovery is ongoing which will include all elements that influence the debt and deficit, such as the rate of economic growth, expected investments, income and expenses, new loans, payment of debts and so on. Recovery plan involves measures on the income side of the budget, which will not effect the competitiveness of the economy, as well as measure on the expenses side with the focus on maintaining the level of standard of living”, said for Portal Analitika minister of finance Radoje Zugic.

Zugic emphasized that construction of the highway from Bar to the border with Serbia, because of the need for taking significant amount of money from the Chinese loan, will cause increase of the debt and deficit in middle term.

“Plan for recovery of the public debt involves the possibility of selling the concession for the highway, which would pass some of the financial obligations to the concessionaire”, said minister.

He said that for now there is no danger that legal obligations of the country in terms of salaries, pensions and reimbursements for mothers with three or more children could meet delays.

He added that in the previous period a set of laws has been passed in the parliament without previous analysis of their fiscal influence and without government’s opinion on the proposed solutions.

“These decisions resulted in significant financial pressure on the public budget (according to last data additional 35-40 million euros will be necessary for reimbursement for mothers with three or more children) which will cause the need for rebalance of the budget in second half of the year.” said minister of the finance”, saopštio je ministar finansija.

Source: Cafe Del Montenegro