The Union of Municipalities of Montenegro welcomes the amendments to the Law on the Financing of Local Self-Government adopted by the Government of Montenegro, which improve the system for the allocation of funds from the Equalisation Fund and strengthen the fiscal stability of local self-governments. These amendments ensure a fairer distribution of state funds, support the sustainability of the budgets of smaller and economically weaker municipalities, and create a foundation for more balanced local development throughout the country. The legislative framework becomes clearer and more functional, while local self-governments gain more stable sources of financing that will enable them to plan development projects, meet their obligations in a timely manner, and continue providing high-quality services to citizens. Additional criteria for the allocation of funds from the Equalisation Fund are being introduced, allowing municipalities with lower fiscal capacity to receive greater support from the state. This will ensure a more equitable financing system and reduce disparities in the level of development among municipalities.
This is yet another example of the successful cooperation between the Ministry of Finance and the Union of Municipalities in advancing local public finances.
The Union of Municipalities of Montenegro particularly appreciates the Ministry of Finance's openness to dialogue and its willingness to identify, through joint efforts, the challenges faced by local self-governments in implementing financial policies. The cooperation between the Union of Municipalities and the Ministry of Finance has demonstrated that, through a partnership-based approach and mutual respect between different levels of government, solutions can be achieved that benefit both the state and local communities.
The Union of Municipalities of Montenegro will continue to actively participate in shaping policies that contribute to strengthening local finances and building a sustainable system for managing public revenues, convinced that maintaining a balance between national and local interests is key to the stable development of Montenegro as a whole.
