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President of Senate at 24th session of the Parliamentary committee on economy, finance and budget

Podgorica, 22nd December 2021 – President of Senate, PhD Milan Dabović and state auditor – head of sector I Mihaela Popović have participated at 24th session of the Parliamentary committee on economy, finance and budget dedicated to discussion on the Proposal Law on the Budget of Montenegro for 2022.

President of Senate, PhD Milan Dabović has pointed out in his introductory remarks that the State audit institution has considered the technical aspect of the budget related to harmonization of fiscal balance included in the legal part and explanation of the Budget. When it comes to the legal acts addressed to ​​reduction of health insurance contributions, this has significantly changed the structure of financing public spending. "The Pension and disability insurance fund states public spending in the amount of € 462 million, while the planned inflows are € 428 million, so that the Fund's deficit amounts about € 33 million. There is a big difference in health insurance contributions - public spending is planned in the amount of 331 million €, however, it is envisaged that these expenditures will be covered from the budget for following year with € 19 million, so that around € 313 million is missing”, said the president of the Senate.

President of Senate has also emphasized the fiscal risks that the State audit institution has identified. One of the fiscal risks is the basis for planning revenues for the following year. The president of the Senate has informed that the SAI has identified that there are certain risks when it comes to sources of financing public spending. One of the fiscal risks is that the plan envisages that the largest part of revenues in relation to the estimated amount will be generated and realized in the last quarter of 2022. "When it comes to the expenditures, there is the issue of the Health insurance fund. It is the year when there will be no contributions for health care and the amount of € 313 million will have to be covered from the general budget revenues, "said the president of the Senate.

President of Senate has stated that the State audit institution gives support to the program budgeting and it represents a great step taken by the Ministry of finance. President of Senate has said that the indicators have to be relevant, representative, economic and comparable and they should give a real state of the economy and finances. President of Senate has added that the State audit institution has identified that the big programs sometimes do not have indicators, but small programs have them, as well as that the analysis has shown that the big programs do not have indicator due to the goals which are not defined in appropriate manner.

Apart from the president of Senate of the State audit institution, the session of the Committee have been attended by the Central bank of Montenegro, Chamber of economy, Association of managers of Montenegro, American chamber of economy, Confederation of Trade Unions of Montenegro, NGO Institute Alternativa, Institute for social and educational policy and Association of veterans of wars 1990 Montenegro.