The Association of Municipalities supports the Ministry’s position: Protect municipal budgets during the establishment of the Sports Development Fund

The Association of Municipalities of Montenegro supports the position of the Ministry of Sports and Youth that the funds for the establishment of the Sports Development Fund should not be provided from the Equalization Fund, especially bearing in mind the financial position of underdeveloped and fiscally sensitive local self-governments. This position was also supported by the Board of Directors of the Association of Municipalities, which includes the presidents of all municipalities, assessing that the allocation of funds from the Equalization Fund would have negative consequences for the 17 municipalities that are its beneficiaries.

The Association of Municipalities believes that the resources of the Equalization Fund, in accordance with the Law on the Financing of Local Self-Government, must be used in line with their intended purpose, as they represent a key mechanism for the financial equalization of underdeveloped municipalities. Their reduction, in the amount of approximately €2.5 million per year, would further jeopardize the budgets of municipalities that already have limited fiscal capacities.

At the same time, the Association of Municipalities emphasizes that local self-governments remain strongly committed to the development of sports. Municipalities will continue, through their programs and budgets, to invest in sports associations, clubs, sports infrastructure, as well as in the promotion of sports among children and youth, which already represents a significant share of their annual expenditures.

The Association of Municipalities fully supports the establishment of the Sports Development Fund as an important instrument for advancing sports at the national level, but with the clear principle that its financing must be secured from sustainable sources that will not come at the expense of the budgets of municipalities which already allocate significant funds for this purpose. It is precisely this approach that confirms the partnership relationship between the Ministry of Sports and Youth and local self-governments, based on mutual respect and the protection of the public interest.

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