CONSOLIDATED PUBLIC EXPENDITURE PLAN OF MONTENEGRO FOR 2007
Projected public expenditure in 2007 is based on economic policy objectives for 2007, which include increase in employment; company restructuring and privatization; reduction of poverty and real growth of living standards. Main goals of public expenditures include increase in budgetary revenues; more rational spending of the Government and HIF Budget and more intensive reforms in the field of judiciary, education and public administration.
DESCRIPTION / PLAN 2007. / % GDP1 / Salaries and other earnings / 283,81 / 14,16
.1
2 / Current expenditures and reserves / 503,69 / 25,13
3 / Capital expenditures / 101,31 / 5,05
4 / Net loans / 6,12 / 0,30
5 / Repayment of guarantees / 2,11 / 0,10
TOTAL EXPENDITURESI (1-5) / 897,04 / 44,76
Upon second consolidation, total public spending amounts 42,85 % of GDP.
DESCRIPTION / PLAN 2007. / % GDP1. / Taxes / 576,49 / 28,77
2. / Fees / 31,72 / 1,58
3. / Contributions / 222,89 / 11,12
4. / Charges / 46,35 / 2,31
5. / Other revenues / 31,65 / 1,58
TOTAL SOURCE REVENUES (1-5) / 909,10 / 45,36
DESCRIPTION / Amount in mil € / % GDP
BUDGET / 10,73 / 0,54
REPUBLIC PENSION AND DISABILITY INSURANCE (PIO) FUND / 0,00 / 0,00
HEALTH INSURANCE FUND (HIF) / 0,00 / 0,00
EMPLOYMENT AGENCY / 0,00 / 0,00
MUNICIPALITIES / 1,34 / 0,06
TOTAL / 12,07 / 0,60
Public revenues for 2007 are projected to the amount of 909,10 mil.€, while public expenditures are projected to the amount of 897,04mil.€. Increase in projected source revenues in 2007 as compared with 2006 is a result of positive trends in collection of VAT, international trade and transactions tax, charges, taxes and other revenues.
Projected public spending surplus for 2007 amounts 12,07 mil.€, which accounts for 0,60 % of projected GDP, and its structure is follows: Budget surplusamounts 10,73 mil €, while municipal surplus is projected to the amount of 1,34 mil €. Please, note that possible additional use of privatization receipts for investments in infrastructure is not hereby included.
CONSOLIDATED PUBLIC EXPENDITUREDESCRIPTION / PLAN 2007 / % GDP
Current Revenues / 909.103.147,23 / 45,36
Taxes / 576.490.709,98 / 28,77
Personal Income Tax / 82.977.767,61 / 4,14
Corporate Income Tax / 15.030.960,15 / 0,75
Property Tax / 20.515.344,06 / 1,02
VAT / 297.138.288,02 / 14,83
Excises / 79.346.958,66 / 3,96
International Trade and Transactions Tax / 60.662.079,76 / 3,03
Local Taxes / 16.343.978,71 / 0,82
Other Republic Revenues / 4.475.333,01 / 0,22
Contributions / 222.893.175,15 / 11,12
Contributions for Pension and Disability Insurance / 135.376.000,00 / 6,76
Health Insurance Contributions / 80.587.175,15 / 4,02
Unemployment Insurance Contributions / 6.930.000,00 / 0,35
Fees / 31.720.070,81 / 1,58
Administrative Fees and Duties / 15.438.286,95 / 0,77
Court Fees / 5.470.330,18 / 0,27
Visitor’s Taxes / 1.263.113,90 / 0,06
Local Municipal Taxes / 7.638.339,78 / 0,38
Other Fees / 1.910.000,00 / 0,10
Charges / 46.350.073,01 / 2,31
Charges for Use of Resources of Common Interest / 2.855.101,84 / 0,14
Charges for Use of Natural Resources / 3.232.454,60 / 0,16
Environmental Charges / 2.110.000,00 / 0,11
Charges for Organization of Games of Chance / 4.022.014,81 / 0,20
Charges for Use of BuildingLand / 8.449.643,15 / 0,42
Charges for Construction and Maintenance of Local Roads / 9.101.599,99 / 0,45
Road Charges / 5.854.165,25 / 0,29
Other Charges / 10.725.093,37 / 0,54
Other Revenues / 21.966.672,07 / 1,10
Yield from Capital / 440.000,00 / 0,02
Fines and Divested Property Benefits / 8.122.255,15 / 0,41
Income from Operations of Agencies / 4.258.522,17 / 0,21
Other Revenues / 9.145.894,75 / 0,46
Receipts from Credit Repayment / 9.682.446,22 / 0,48
Receipts from Repayment of Credit Granted to Public Companies / 6.382.446,22 / 0,32
Receipts from Repayment of Credit Granted to Other Institutions / 3.300.000,00 / 0,16
EXPENDITURES / 897.037.570,71 / 44,76
Current Expenditures / 456.512.363,11 / 22,78
Gross Earnings and Contributions Payable by Employer / 253.917.490,24 / 12,67
Net Earnings / 147.218.534,94 / 7,35
Payroll Tax / 28.753.516,33 / 1,43
Contributions Payable by Employee / 40.557.643,15 / 2,02
Contributions Payable by Employer / 33.647.065,82 / 1,68
Municipal Surtax / 3.740.730,00 / 0,19
Other Personal Earnings / 29.891.403,72 / 1,49
Expenditures for Material and Services / 95.391.225,32 / 4,76
Current Maintenance / 27.122.492,96 / 1,35
Interests / 20.250.894,97 / 1,01
Rent / 5.477.101,32 / 0,27
Subsidies / 16.055.890,82 / 0,80
Other Expenditures / 8.405.863,75 / 0,42
Social Security Transfers / 272.947.927,61 / 13,62
Rights in the Field of Social Security / 35.369.510,00 / 1,76
Redundancy Funds / 11.720.000,00 / 0,58
Rights in the Field of Pension and Disability Insurance / 167.761.000,00 / 8,37
Other Rights in the Field of Health Insurance / 58.097.417,61 / 2,90
Transfers to Institutions, Individuals, NGOs and Public Sector / 50.258.706,94 / 2,51
Transfers to Public Institutions / 28.913.865,37 / 1,44
Transfers to NGOs / 6.317.079,23 / 0,32
Transfers to Individuals / 15.027.762,34 / 0,75
Capital Expenditures / 101.308.954,84 / 5,06
Loans and Credits / 6.120.000,00 / 0,31
Repayment of Guarantees / 2.111.160,00 / 0,11
Reserves / 7.778.458,21 / 0,39
DEFICIT / SURPLUS / 12.065.576,52 / 0,60
Financing / -12.065.576,52 / -0,60
Domestic Financing / -26.325.269,71 / -1,31
Loans and Credits from Local Sources / 1.529.109,33 / 0,08
Debt Repayment / 12.437.349,94 / 0,62
Repayment of Old Foreign Currency Savings / 10.000.000,00 / 0,50
Repayment of Liabilities from Previous Period / 5.417.029,10 / 0,27
Foreign Financing / 1.785.734,86 / 0,09
Credits and Securities / -10.302.629,98 / -0,51
Loans and Credits from Foreign Sources / 4.870.000,00 / 0,24
Debt Repayment / 15.172.629,98 / 0,76
Donations / 1.088.364,84 / 0,05
Project Loans / 11.000.000,00 / 0,55
Privatization Receipts or Deposits / 26.009.279,43 / 1,30
Increase/decrease in deposit / -13.535.321,10 / -0,68
BUDGET OF THE REPUBLIC OF MONTENEGRO
Projections of the Republic Budget Revenues for 2007 have been based on: revenues which were realized in previous years and in the first nine months of 2006; projected increase in GDP; increase in retail prices; and projected fiscal impact of new regulations to be applicable in 2007.
Based on the above parameters, current Budget revenues in 2007 (excluding privatization receipts, donations, loans and credits) are projected to amount 588,99 mil. €, which is by 19,55 % higher than planned in 2006. Projected increase in current Budget revenues is based on positive trends in collection of VAT, International Trade and Transactions Tax, charges and other revenues.
Net negative fiscal impact of implementation of proportional rate of 15% on personal income tax in 2007 will amount 3,8 mil €.
Budget of the Republic of MontenegroDESCRIPTION / PLAN 2007 / % GDP
Current Revenues / 588.992.746,65 / 29,39
Taxes / 528.699.428,79 / 26,38
Fees / 20.124.262,24 / 1,00
Charges / 18.637.065,56 / 0,93
Other Revenues / 16.024.624,84 / 0,80
Receipts from Credit Repayment / 5.507.365,22 / 0,27
Consolidated expenditures of current Republic Budget are planned to the amount of 578,26 mil €, which is 28,86 % of projected GDP. Current expenditures are projected to the amount of 332,09 mil €;social security transfers - 43,43 mil €; transfersto institutions, individuals and NGOs - 119,90 mil €; capital expenditures - 69,25 mil € and reserves- 5,97 mil €.
Gross earnings account for 8,97 % of projected GDP. Increase in 2007 was result of taking over the competences which were delegated to former State Union; opening of missions abroad and projected increase in minimum labour price by 4%.
DESCRIPTION / PLAN 2007 / % GDPExpenditures / 578.262.510,13 / 28,86
Current Expenditures / 332.094.285,93 / 16,57
Gross Earnings and Contributions Payable by Employer / 179.787.297,70 / 8,97
Other Personal Earnings / 20.827.164,00 / 1,04
Expenditures for Material and Services / 72.485.028,20 / 3,62
Current Maintenance / 20.169.093,92 / 1,01
Interests / 19.677.687,08 / 0,98
Rent / 5.367.101,32 / 0,27
Subsidies / 8.265.000,00 / 0,41
Other Expenditures / 5.515.913,71 / 0,28
Social Security Transfers / 43.429.510,00 / 2,17
Transfers to Institutions, Individuals, NGOs and Public Sector / 119.904.520,62 / 5,98
Capital Expenditures / 69.253.033,58 / 3,46
Loans and Credits / 5.500.000,00 / 0,27
Repayment of Guarantees / 2.111.160,00 / 0,11
Reserves / 5.970.000,00 / 0,30
Projected budget surplus for 2007amounts 10,73 mil € .
Deficit / 10.730.236,52 / 0,54Financing / -10.730.236,52 / -0,54
Domestic Financing / -23.425.379,04 / -1,17
Debt Repayment / 8.008.349,94 / 0,40
Repayment of Old Foreign Currency Savings / 10.000.000,00 / 0,50
Repayment of Liabilities from Previous Period / 5.417.029,10 / 0.27
Foreign Financing / 1.297.370,02 / 0,06
Credits and Securities / -10.302.629,98 / -0,51
Loans and Credits from Foreign Sources / 4.870.000,00 / 0,24
Debt Repayment / 15.172.629,98 / 0,76
Donations / 600.000,00 / 0,03
Project Loans / 11.000.000,00 / 0,55
Privatization Receipts / 11.397.772,50 / 0,57
Transfers / 0,00 / 0,00
Increase/decrease in deposit / 0,00 / 0,00
REPUBLIC PENSION AND DISABILITY INSURANCE (PIO) FUND
Projections of receipts and expenditures of the PIO Fund for 2007 have been based on receipts and expenditures from the previous years and in the first nine months of 2006; data on trends in GDP harmonized with IMF and EU; projections of total public expenditure for 2007; relative share of PIO Fund Budget in GDP; assessments of increase in number of pensioners and increase in earnings and cost of living as basic parameters for adjustment of pension related expenditures.
Based on the above parameters, projected current revenues of the PIO Fund for 2007 amount 136.38 mil € , while transfers from the Republic Budget account for 64,34 mil.€. Amount of transfers includes funds for possible payment of military pensions. Projected income from contributions amount 135,38 mil € and 1,0 mil. € from other revenues.
Total projected current and capital expenditures (gross earnings, other personal earnings, expenditures for material and services, capital expenditures and other expenditures) amount 5,23 mil.€, while expenditures for exercising the rights in the field of pension and disability insurance amount 194,76 mil. €
Expenditures for pension insurance rights are projected to amount 194,76 mil.€- 167,76 mil. € for payment of pensions and 27,00 mil. € for health care contributions. Increase in deposit at the end of the year amounts 7,2 mil €, thanks to the privatization receipts.
Republic Pension and Disability Insurance FundDESCRIPTION / PLAN 2007 / % GDP
Current Revenues / 136.376.000,00 / 6,81
Contributions / 135.376.000,00 / 6,76
Contributions for Pension and Disability Insurance / 135.376.000,00 / 6,76
Other Revenues / 1.000.000,00 / 0,05
Other Revenues / 1.000.000,00 / 0,05
Expenditures / 200.712.000,00 / 10,02
Current Expenditures / 5.231.000,00 / 0,26
Gross Earnings and Contributions Payable by Employer / 2.270.000,00 / 0,11
Other Personal Earnings / 273.000,00 / 0,01
Expenditures for Material and Services / 2.000.000,00 / 0,10
Current Maintenance / 160.000,00 / 0,01
Interests / 400.000,00 / 0,02
Rent / 50.000,00 / 0,00
Other Expenditures / 78.000,00 / 0,00
Social Security Transfers / 167.761.000,00 / 8,37
Rights in the Field of Pension and Disability Insurance / 167.761.000,00 / 8,37
Transfers to Institutions, Individuals, NGOs and Public Sector / 27.300.000,00 / 1,36
Transfers to Individuals / 300.000,00 / 0,01
Transfers to HIF / 27.000.000,00 / 1,35
Capital Expenditures / 100.000,00 / 0,00
Loans and Credits / 170.000,00 / 0,01
Reserves / 150.000,00 / 0,01
Deficit / 0,00 / 0,00
Financing / 0,00 / 0,00
Privatization Receipts / 7.200.000,00 / 0,36
Transfers / 64.336.000,00 / 3,21
Increase/Decrease in Deposit / -7.200.000,00 / -0,36
REPUBLIC HEALTH INSURANCE FUND (HIF)
The Government of the Republic of Montenegro adopted a Financial Plan for a Sustainable Health System in Montenegro, for the period 2005-2007, providing for restructuring of health system with a view to improving primary health care, along with more rational use of resources and increased efficiency at the second and third level of health care, which is in conformity with the Master Plan- Development of Health Care System in Montenegro.
Receipts of the HIF for 2007 are projected to the amount of 115,92 mil. €. Income from health care contributions is planned to the amount of 80,59 mil. €. Transfers from the Republic Budget for health care of refugees and IDPs, unemployed persons and capital expenditures are planned to the amount of 6,88 mil. €, while PIO Fund transfers for health care of pensioners amount 27 mil €. Other revenues are planned to the amount of 1,45 mil. €, including income from co-payments by the insured and other revenues of the HIF institutions.
Total expenditures of HIF are projected to the amount of 115,92 mil. €, out of which salaries and personal earnings account for 54,96 mil.€; social security transfers account for 58,1 mil. € and capital expenditures account for 2,86 mil. €. Expenditures for salaries and other personal earnings are related to employees with the Health Insurance Fund and Public Health Institutions of Montenegro.
Republic Health Insurance FundDESCRIPTION / PLAN 2007 / % GDP
Current revenues / 82.039.078,75 / 4,09
Contributions / 80.587.175,15 / 4,02
Health Insurance Contributions / 80.587.175,15 / 4,02
Other Revenues / 1.451.903,60 / 0,07
Other Revenues / 1.451.903,60 / 0,07
Expenditures / 115.919.078,75 / 5,78
Current Expenditures / 54.963.541,10 / 2,74
Gross Earnings and Contributions Payable by Employer / 48.917.551,58 / 2,44
Other Personal Earnings / 6.045.989,52 / 0,30
Social Security Transfers / 58.097.417,61 / 2,90
Other Rights in the Field of Health Insurance / 58.097.417,61 / 2,90
Capital Expenditures / 2.858.120,04 / 0,14
Deficit / 0,00 / 0,00
Financing / 0,00 / 0,00
Transfers / 33.880.000,00 / 1,69
Increase/Decrease in Deposit / 0,00 / 0,00
EMPLOYMENT AGENCY OF MONTENEGRO
The Employment Agency of Montenegro, through various education programs, strives to improve the quality of work force and reduce apparent structural disproportion between supply and demand concerning certain jobs. At the same time, the Agency contributes to reduction of number of unemployed persons, by implementing new development projects and programs, which allow creation of new jobs primarily through financial support for self-employment in small businesses.
Projections of receipts and expenditures of the Agency budget in 2007 are based on their execution in the first nine months 2006; real growth of projected GDP for 2007 and relative share of the Employment Agency in projected public expenditure for 2007.
Revenues of the Employment Agency of Montenegro in 2007 are projected to the amount of 19,21 mil.€, out of which current revenues account for 12,64 mil.€, while transfers from the Republic Budget for employment of trainees and allowances for unemployed persons account for 6,57 mil.€.
Expenditures of the Agency in 2007 are planned to the amount of 19,21 mil.€, out of which current expenditures account for 7,83 mil.€ (gross earnings and other earnings, expenditures for material, rent),social security transfersand redundancy funds account for 3,66 mil. €, while transfers to institutions and individuals account for 6,67 mil. €, capital expenditures account for 0,60 mil.€ and loans and credits for self-employment account for 0,45 mil.€.
Employment AgencyDESCRIPTION / PLAN 2007 / % GDP
Current revenues / 12.635.000,00 / 0,63
Taxes / 0,00 / 0,00
Contributions / 6.930.000,00 / 0,35
Unemployment Insurance Contributions / 6.930.000,00 / 0,35
Local Taxes / 1.910.000,00 / 0,10
Other Local Taxes / 1.910.000,00 / 0,10
Charges / 0,00 / 0,00
Other Revenues / 495.000,00 / 0,02
Yields from Capital / 440.000,00 / 0,02
Other Revenues / 55.000,00 / 0,00
Receipts from credit repayment and funds transferred from previous year / 3.300.000,00 / 0,16
Receipts from repayment of credit granted to other institutions / 3.300.000,00 / 0,16
Expenditures / 19.205.000,00 / 0,96
Current Expenditures / 7.826.000,00 / 0,39
Gross Earnings and Contributions Payable by Employer / 3.556.000,00 / 0,18
Other Personal Earnings / 768.000,00 / 0,04
Expenditures for Material and Services / 2.926.000,00 / 0,15
Current Maintenance / 400.000,00 / 0,02
Interests / 100.000,00 / 0,00
Rent / 60.000,00 / 0,00
Other Expenditures / 16.000,00 / 0,00
Social Security Transfers / 3.660.000,00 / 0,18
Redundancy Funds / 3.660.000,00 / 0,18
Transfers to Institutions, Individuals, NGOs and Public Sector / 6.669.000,00 / 0,33
Transfers to Individuals / 6.669.000,00 / 0,33
Capital Expenditures / 600.000,00 / 0,03
Loans and Credits / 450.000,00 / 0,02
Deficit / 0,00 / 0,00
Financing / 0,00 / 0,00
Privatization Receipts / 4.750.000,00 / 0,24
Transfers / 6.570.000,00 / 0,33
Increase/Decrease in Deposit / -4.750.000,00 / -0,24
LOCAL SELF-GOVERNMENT
Projections of receipts and expenditures of the municipal budgets for 2007 are based on budget spending execution for the first nine months 2006 in 21 municipality of the Republic of Montenegro; its relative share in projected GDP for 2007; and fiscal impact of new legislation on local self-government, primarily Personal Income Tax Act. Revenues of the local self-government in 2007 are planned to the amount of 93,7 mil. € out of which source revenues account for 89,06 mil.€, while transfers from the Republic Budget account for 1,98 mil. € and privatization receipts account for 2,66 mil.€. Projected expenditures in 2007 amount 89,71 mil.€, out of which current expenditures account for 56,4 mil. €, capital expenditures account for 28,5 mil. €, transfers to institutions - 3,15 and reserves account for 1,66 mil €
Local Self-GovernmentDESCRIPTION / PLAN 2007 / % GDP
Current Revenues / 89.060.321,83 / 4,44
Taxes / 47.791.281,19 / 2,38
Personal Income Tax / 16.862.673,49 / 0,84
Property Tax / 14.584.628,99 / 0,73
Local Taxes / 16.343.978,71 / 0,82
Fees / 9.685.808,56 / 0,48
Administrative Fees and Duties / 1.189.626,47 / 0,06
Visitor’s Taxes / 857.842,31 / 0,04
Local Municipal Taxes / 7.638.339,78 / 0,38
Charges / 27.713.007,45 / 1,38
Charges for Use of Resources of Common Interest / 1.502.411,52 / 0,07
Charges for Use of BuildingLand / 8.449.643,15 / 0,42
Charges for Construction and Maintenance of Local Roads / 9.101.599,99 / 0,45
Other Charges / 8.659.352,79 / 0,43
Other Revenues / 2.995.143,64 / 0,15
Fines and Divested Property Benefits / 91.798,09 / 0,00
Income from Operations of Agencies / 579.265,20 / 0,03
Other Revenues / 2.324.080,34 / 0,12
Receipts from Credit Repayment and Funds Transferred from Previous Year / 875.081,00 / 0,04
Receipts from Repayment of Credit Granted to Public Companies / 875.081,00 / 0,04
Expenditures / 89.705.148,35 / 4,48
Current Expenditures / 56.397.536,08 / 2,81
Gross Earnings and Contributions Payable by Employer / 19.386.640,96 / 0,97
Other Personal Earnings / 1.977.250,20 / 0,10
Expenditures for Material and Services / 17.980.197,12 / 0,90
Current Maintenance / 6.393.399,04 / 0,32
Interests / 73.207,89 / 0,00
Subsidies / 7.790.890,82 / 0,39
Other Expenditures / 2.795.950,04 / 0,14
Transfers to Institutions, Individuals, NGOs and Public Sector / 3.151.352,84 / 0,16
Capital Expenditures / 28.497.801,22 / 1,42
Reserves / 1.658.458,21 / 0,08
Deficit / 1.335.340,00 / 0,07
Financing / -1.335.340,00 / -0,07
Domestic Financing / -2.899.890,67 / -0,14
Loans and Credits from Local Resources / 1.529.109,33 / 0,08
Debt Repayment / 4.429.000,00 / 0,22
Foreign Financing / 488.364,84 / 0,02
Donations / 488.364,84 / 0,02
Privatization Receipts / 2.661.506,93 / 0,13
Transfers / 1.980.166,52 / 0,10
Increase/Decrease in Deposit / -1.585.321,10 / -0,08
COMPENSATION FUND
In order to ensure funds for compensation to former owners who are not entitled to take back divested property physically, the Government of the Republic of Montenegro established the Compensation Fund. The Fund is a legal entity which ensures funds for compensation to former owners with regard to rights that were deprived in favour of national, state, social or co-operative ownership.
Revenues of the Fund resulting from privatization in 2007 will depend on a selling price of the property subject to privatization and dynamic of the privatization process. Based on sale of restitution bonds at the securities market by former owners and their further sale in the privatization procedure, state Funds obtained a right to claim compensation from the Compensation Fund as new holders of bonds to the amount of their respective bond pursuant to the Law on Restitution of Property Rights and Compensation. Thus, their liabilities to the Fund will be reduced by the amount of the said bonds of which they are holders.
Under the 2007 Budget Law,0,5 mil € have been allocated to the Compensation Fund for current expenditures.
Deposits of the Compensation Fund amounted about 14 mil € on 16 October 2006.
By November 2006, the Fund received 259 executive decisions regarding restitution and compensation rights from Municipal Commission on Restitution and Compensation, amounting 47.602.734,16 € total.
Based on received valid decisions from municipal commissions, former holders were paid total 11.770,361.00 € by the Fund, out of which 2.046.073,00 € in cash, and 9.724.288,00 € in bonds with 15 years maturity.
Expected liabilities of the Fund to former holders in 2007 will amount 2.145.339,00 € based on the decisions received. Funds for payment of the above liabilities have been fully provided with the Compensation Fund.
DEVELOPMENT FUND OF THE REPUBLIC OF MONTENEGRO
Development Fund of the Republic of Montenegrowas established for the purpose of stimulating economic growth, proprietary, production and financial restructuring of economy and development of capital market. Development Fund makes revenues through the sale of shares from its portfolio, collection of dividends form companies operating positively and from interests on invested funds.
Business policy priorities of the Fund are as follows:
- Funding dynamic entrepreneurship (focusing on micro, small and medium-sized enterprises) in accordance with the Government Policy and Economic Reform Agenda;
- Supporting export projects
- Supporting projects in the field of agricultural and food production;
- Supporting projects in the field of tourism
- Taking full account of regional development of the Republic of Montenegro(advantage is given to projects related to development of northern part of the Republic)
In co-operation with the European Agency for Reconstruction, the Fund will hire foreign experts in the forthcoming period, who will review the work and functioning of the Fund for the purpose of its restructuring.
Development Fund of the Republic of Montenegro is economically self-sustainable, covering its current business expenses (depreciation, material costs, wages and other expenses)by its source revenues. Source revenues of the Fund are revenues from interests and dividends.
Pursuant to the Law on Restitution of Property Rights and Compensation (Official Gazette of RM, 21/04), the Fund is obliged to transfer 10% of its privatization receipts to the Restitution Fund.
Large part of the privatization receipts, the Fund realizes in bonds, which may not be directly used as a support for development projects.
a)Plan of expected inflows and outflows from the account of the Development Fund in 2007
INFLOWNo. / Amount
1. / Sale of share packages / 5,000,000.00
2. / Sale of shares at stock exchange / 500,000.00
3. / Refunds from investments / 3,500,000.00
4. / Fixed deposits / 15,000,000.00
5. / Inflow from bankruptcy and liquidation estate / 200,000.00
TOTAL / 24,200,000.00
OUTFLOW
No. / Amount
1. / Realization of competitions – continued support to entrepreneurship / 7,500,000.00
2. / Co-funding the projects of local strategic importance / 6,500,000.00
3. / Depositing of funds, funding the projects of national importance / 8,000,000.00
4. / Restructuring of companies in which the Fund is major shareholder / 500,000.00
5. / Restitution Fund / 550,000.00
6. / Reserves for court proceedings / 1,000,000.00
7. / Other / 150,000.00
TOTAL / 24,200,000.00
b)Plan of expected income and expenses of the Development Fund in 2007
INCOMENo. / Amount
1. / Income from interests / 700,000.00
2. / Income from dividends / 150,000.00
3. / Other income / 20,000.00
TOTAL / 870,000.00
No. / EXPENSES / Amount
1. / Gross salaries and other remunerations / 302,000.00
2. / Other non-material expenses / 277,000.00
3. / Procurement and maintenance expenses for fixed assets, plus Expert service expenses / 62,000.00
4. / Transaction costs (bank and broker’s fees, court and other administrative expenses, etc.) / 44,000.00
TOTAL / 685,000.00
MID-TERM FRAMEWORK OF PUBLIC SPENDING IN MONTENEGRO FOR THE PERIOD 2007-2009
Table below shows a mid-term framework of public spending for 2007-2009: