Montenegro advances new budget and fiscal responsibility law

The Government of Montenegro has moved forward with a proposal for a new Law on Budget and Fiscal Responsibility. The legislative act aims to establish a modern, comprehensive, and EU-aligned framework for budget planning, execution, and fiscal discipline.

Key objectives of the reform include aligning Montenegro's fiscal policy with European Union directives and ESA 2010 standards. The law seeks to improve transparency and long-term sustainability of public finances by refining deficit reduction plans and strengthening the role of the Fiscal Council.

The proposed changes also introduce stricter rules for local governments, requiring municipalities to align their annual budget decisions with new guidelines and deadlines set by the Ministry of Finance. This reform follows recommendations from the IMF, the World Bank, and EU financial institutions to ensure better management of public debt and capital projects.