Parliament adopts 2025 Budget and Pension Law amendments

Published on 8. February 2025., News

The Parliament adopted the Budget Law for this year, as well as a decision on borrowing.

A total of 46 MPs voted in favor of adopting this key economic act, with one abstaining.

According to the Budget Law, the main macroeconomic projections indicate an average annual real growth of Montenegro’s economy in the medium term of 3.7%, with specific growth rates of 4.8% for this year, 3.2% in 2026, and 3.1% in 2027.

The budget’s original revenues are planned at 2.89 billion EUR, which is 102 million EUR or 3.7% higher compared to last year’s estimate.

Total planned expenditures are 4.03 billion EUR, 505.5 million EUR more than last year.

Of this amount, 1.5 billion EUR is allocated for the current budget, 1.3 billion EUR for state funds, 280 million EUR for capital expenditures, 886 million EUR for financing transactions, and 43.5 million EUR for reserves.

The budget for public finance is planned at 1.2 billion EUR, social welfare at 1.08 billion EUR, healthcare at 474 million EUR, education and science at 362 million EUR, and transport at 242 million EUR.

The capital budget is set at 280 million EUR, an increase of 40 million EUR or 15% compared to last year.

The budget deficit will amount to 3.5% of gross domestic product (GDP), or 278 million EUR.

The MPs also adopted amendments to the Pension and Disability Insurance Law.

The amendments stipulate the introduction of payments to users of proportional pensions to make up the difference up to the minimum pension amount of 450 EUR, if their combined proportional pensions are lower than the prescribed minimum pension, according to Article 29 of the Law.