Podgorica, (MINA-BUSINESS) – According to Minister of Finance Novica Vukovic, the proposed budget for next year is based on realistic macroeconomic assumptions and projected GDP growth, with stable inflation and strong domestic demand as the key drivers of economic activity.

He stated that the general features of next year’s budget include continued positive economic trends, with an expected real economic growth rate of 3.3 percent next year and an average of 3.2 percent from next year until 2028.

“Another characteristic is limited inflationary pressures through reduced inflation rate. The medium-term growth pace will primarily be driven by strong domestic demand, with investments as the engines of economic activity,” Vukovic said at a press conference presenting the budget for 2026.

He added that a strong investment cycle will continuously support growth prospects.

“New borrowing from now until 2028 will serve to finance capital projects and repay old debts. Through capital expenditures, €1.1 billion will be invested over the next three years, a significant portion of which is supported through the Western Balkans Growth Plan and other initiatives,” Vukovic said.

The capital budget for next year is at its highest level ever, amounting to €305 million.

Director-General of the Directorate for the State Budget Bojan Paunovic said that total budget revenues, combined with planned deposits carried over from this year, will amount to €3.79 billion.

“Compared to this year's budget, current expenditures are higher by €100.1 million, the budget of state funds by €99.1 million, capital expenditures by €25 million, while financing transactions are reduced by €459.3 million, and the reserve by €3.3 million,” Paunovic said.