1.252 billion Euros have been allocated for various expenses of the national government in the Montenegro budget 2012. The budget has also been created considering the present fiscal and overall economic realities in the country.
The policymakers have also kept in mind the suggestions made by the global associates of Montenegro like the World Bank.
Highlights of Montenegro Budget 2012:
The amount earmarked for various expenses in 2012 fiscal is almost 26 million lesser than what had been allotted in 2011 fiscal.
As per the Finance Minister of Montenegro, Milorad Katnic, the 2012 budget projects a nominal growth rate of 4 percent and real growth rate of 2%.
The aggregate public expenditure of Montenegro will amount to 41 percent of the Gross Domestic Product (GDP) in 2012.
This amount also includes the expenses of the municipalities. But if fiscal consolidation is included in the calculations it may further fall to 40% of the GDP.
The 2012 budget does not have any major deductions and makes sure that all the governmental agencies function properly.
The budget also looks to provide the state owned entities all financial and operational assistance.
The 2012 budget looks to reduce public debt to 46.8 percent of the GDP and the fiscal deficit by 1.25%.
Expectations from Montenegro Budget 2012:
Katnic has stated that the governmental estimates are conservative compared to ones made by the World Bank and the International Monetary Fund. According to Milorad this proves that the government is really serious about creating a responsible and properly-functioning economy.
He has emphasized on the fact that Montenegro is among the few European countries that have been able to satisfy the Maastricht criteria. He opines that this conveys a strong message to the global business and political circles about the strength and sustainability of Montenegro s financial policies.
Katnic has further stated that a tight budget is the right course given the present global economic condition of slow growth. The European country has also got a loan of 85 million dollars from the World Bank and it is expected that the amount will be used for meeting its budgetary expenses.
Montenegro Budget 2012 Proposed Judicial Reforms:
Through the 2012 budget the Montenegro government has called for several changes to the existing judicial system through a Bill on Bailiffs. The organization of bailiffs is supposed to be better than the present judicial observance system in terms of efficiency and essential decision making. This step is expected to provide some leeway for the courts with regards to decision making.
Experts feel that with the new judicial proposals the administration will make sure that the court orders are announced in lesser time and are done in a more effective and professional way with the bailiffs the overall time needed to conduct legal proceedings against individuals will be lessened as well.
More importantly, with these proposals Montenegro will be able to adhere to the critical rights that are safeguarded by the European Convention for the Protection of Human Rights and Fundamental Freedoms.