Secretary of the Committee for Financing Local Self-Government of the Union of Municipalities of Montenegro Žana Đukić stated at the session of the Committee on Economy, Finance and Budget of the Parliament of Montenegro that the Draft Budget Law for 2026 has a significant impact on the functioning and development of local self-governments, even though they are not formally spending units of the state budget.
Đukić emphasized that it is encouraging that the capital section of the budget recognizes projects of special importance for municipalities in the north of the country, particularly those contributing to tourism development, such as ski centers at the Kolašin, Cmiljača, Žarski, and Hajla sites, as well as the valorization of Đalovića Cave.
“The implementation of these projects is important not only for the north of Montenegro, but also for the country as a whole, which is increasingly relying on tourism,” Đukić stated.
She particularly emphasized the importance of projects in the field of environmental protection, highlighting the need for the urgent implementation of measures to reduce pollution and provide district heating for Pljevlja, bearing in mind the alarming state of air quality and the endangered health of citizens.
Speaking about the preparation of capital projects, Đukić pointed to the importance of the budget item relating to the preparation of technical and project documentation, stating that a large number of municipalities do not have sufficient own funds for this purpose.
“This type of support is of crucial importance for local self-governments, because without high-quality project documentation there can be no implementation of capital investments,” she said.
Đukić also recalled the importance of the Fund for Supporting Municipalities in the Pre-financing of Donor Projects, which has been operating since 2019 under a revolving model. As she stated, municipalities have so far drawn approximately €4.7 million, while €1.5 million is planned for 2026, representing significant support for local self-governments.
She also positively assessed the planning of earmarked grants for the municipalities of the northern region, as well as the municipalities of Zeta and Tuzi, stating that these legal solutions, which have been applied since 2024, have significantly improved their financial stability.
At the same time, Đukić pointed out a shortcoming in the Draft Budget Law in the section concerning transfers to municipalities for social and child protection services. According to her, only two million euros have been planned, even though, according to estimates by the competent ministry, eight million euros are needed to provide the minimum support services for community living in all municipalities.
“Local self-governments, particularly those with weaker fiscal capacity, are not in a position to take on such a large financial burden on their own,” warned Đukić.
At the end of her presentation, the Secretary of the Finance Committee of the Union of Municipalities of Montenegro appealed for earmarked funds to be planned in the 2026 Budget for the procurement of firefighting vehicles and equipment for municipal protection and rescue services, especially for the municipalities that are beneficiaries of the Equalization Fund.
“The last systematic procurement of firefighting vehicles in many municipalities was carried out back in 2010, and the existing equipment is technically outdated and often non-operational. Investment in protection and rescue services is no longer a matter of comfort, but a matter of safety and the protection of citizens’ lives,” concluded Đukić.
