The Law on Budget of Montenegro for 2008

Official Gazette of Montenegro, number 17/07 1

GOVERNMENT OF MONTENEGRO

LAW ON BUDGET OF MONTENEGRO FOR 2008

The Law on Budget of Montenegro for 2008

Official Gazette of Montenegro, number 17/07 2

THE LAW ON BUDGET OF MONTENEGRO FOR 2008

I GENERAL PART

Article 1 The Law on Budget of Montenegro for 2008 (hereinafter: the Budget) establishes that total budget funds amount to 730.409.181,00 . Receipts in the amount of 730.409.181,00 shall be allocated as follows: I CURRENT BUDGET .................................................................... 662.976.208,00

Budget expenditures in the amount of.............................. 620.993.255,44

Borrowings and loans in the amount of........................................3.985.003,28

Repayment of debt in the amount of......................................... 15.690.000,00

Repayment of guarantees in the amount.................................. 600.000,00

Repayment of arrears from previous years.............................. .12.500.000,00

Current budget reserve in the amount of .................................... 7.707.949,28

Permanent budget reserve in the amount of............................. 1.500.000,00 II CAPITAL BUDGET .......................................................................... 67.432.973,00

Article 2

Receipts amounting to 34.989.987,85 shall be used for increasing government deposits.

Article 3

Receipts by types and by economic classification are determined in the following amounts:

The Law on Budget of Montenegro for 2008

Official Gazette of Montenegro, number 17/07 3

Classification Description Amount

7 Receipts 765.399.168,85 71 Current revenues 712.269.168,85

711 Taxes 633.700.337,82 7111 Personal income tax 83.784.984,22 7112 Tax on profits of legal persons 47.402.228,10 7113 Property taxes 11.980.308,74 7114 Value added tax 310.654.925,46 7115 Excise taxes 99.516.451,66 7116 Tax on foreign trade and transactions 72.893.300,83 7118 Other taxes 7.468.138,81

713 Fees 24.837.339,20 7131 Administrative fees 14.964.159,73 7132 Court fees 8.925.633,56 7133 Temporary residence fees 947.545,91

714 Charges 26.562.351,42 7141 Charges for use of goods of common interest 5.746.368,34 7142 Charges for use of natural resources 3.697.774,10 7143 Ecological charges 2.769.488,07 7144 Charges for organizing games of chance 4.830.000,00 7148 Road charges 6.637.061,26 7149 Other charges 2.881.659,64

715 Other revenues 27.169.140,40 7151 Capital revenues 1.500.000,00 7152 Fines and seized property gains 11.717.212,48 7153 Revenues from own activities of government bodies 6.572.940,00 7155 Other revenues 7.378.987,93

72 Receipts from sale of assets 15.500.000,00 721 Receipts from sale of non-financial assets 10.000.000,00

7211 Receipts from sale of immovable property 10.000.000,00 722 Receipts from sale of financial assets 5.500.000,00

7221 Sale of shares 5.500.000,00

73 Receipts from repayment of loans and funds transferred from the previous year 7.130.000,00

731 Receipts from repayment of loans 7.130.000,00

7311 Receipts from repayment of loans extended to other government levels 7.130.000,00

741 Donations and transfers 800.000,00 7411 Current donations 800.000,00

75 Borrowings and loans 29.700.000,00 751 Borrowings and loans 29.700.000,00

7512 Borrowings and loans from foreign sources 21.700.000,00 7513 Project loans 8.000.000,00

The Law on Budget of Montenegro for 2008

Official Gazette of Montenegro, number 17/07 4

Article 4

Current budget by expenditures and economic classification is determined in the following amounts:

Classification Description Amount 4 Expenditures 662.976.208,00

41 Current expenditures 453.307.685,30 411 Gross salaries and contributions charged from employer 254.920.429,56

4111 Net salaries 146.222.270,34 4112 Personal income tax 29.154.895,98 4113 Contributions charged from employees 41.395.964,16 4114 Contributions charged from employers 34.069.440,85 4115 Municipal surtax 4.077.858,23

412 Other personal income 20.525.773,60 4121 Sustenance allowance 8.809.405,00 4122 Holiday bonuses 5.047.118,00 4124 Allowance for lodgings and separation from family 1.888.229,60 4125 Transportation allowance 223.600,00 4126 Jubilee awards 1.355,00 4127 Severance pay 851.560,00 4128 Allowances to Parliament representatives 450,000.00 4129 Other allowances 3.254.506,00

413 Expenditures for supplies and services 105.374.353,84 4131 Expenditures for supplies 19.155.996,80 4132 Expenditures for business trips 6.503.944,54 4133 Expenditures for business entertainment 704.416,00 4134 Expenditures for energy 17.142.996,59 4135 Expenditures for telephone services 5.045.556,41 4136 Expenditures for postal services 1.424.432,89 4137 Banking services and FX translation losses 364.006,00 4138 Transportation services 1.088.654,00 4139 Contracted services 59.943.350,61

414 Current maintenance 22.098.620,00 4141 Current maintenance of public infrastructure 16.337.200,00 4142 Current maintenance of building facilities 2.843.492,00 4143 Current maintenance of equipment 2.917.928,00

415 Interest 18.888.600,00 4151 Interests to residents 508.600,00 4152 Interests to non-residents 18.380.000,00

416 Lease 9.559.116,08 4161 Lease of buildings 9.137.120,08 4162 Lease of equipment 400.220,00 4163 Lease of land 21.776,00

417 Subsidies 16.015.000,00 4171 Subsidies for production and provision of services 16.015.000,00

418 Other expenditures 5.925.792,22 4181 Communal charges 4.434.820,26 4182 Fines 2.600,00

The Law on Budget of Montenegro for 2008

Official Gazette of Montenegro, number 17/07 5

4183 Fees 62.920,00 4184 Other 1.425.451,96

42 Social care transfers 45.973.400,00 421 Social care related rights 41.323.400,00

4211 Childrens allowances 4.050.000,00 4212 War veteran and disability care 8.900.000,00 4213 Family financial support 13.300.000,00 4214 Maternity leave 6.850.000,00 4215 Other peoples care and help 4.778.000,00 4216 Meals for children in preschool institutions 345.400,00 4217 Support for inmates in homes 2.900.000,00 4218 Other social care related rights 200.000,00

422 Funds for redundant employees 4.650.000,00 4222 Severance pay for redundant employees 4.650.000,00

43 Transfers to institutions, individuals, NGO and public sector 54.473.357,18 431 Transfers to institutions, individuals, NGO and public sector 54.473.357,18

4311 Transfers to public institutions 34.959.796,06 4312 Transfers to NGOs, political parties, entities and associations 7.679.852,72 4313 Transfers to individuals 8.813.708,40 4317 Transfers to municipalities 2.735.000,00 4319 Transfers to public enterprises 285.000,00

44 Capital expenditures 67.238.812,96 441 Capital expenditures 67.238.812,96

4411 Expenditures for infrastructure of general importance 2.137.600,00 4412 Expenditures for local infrastructure 11.148.000,00 4413 Expenditures for building facilities 11.986.037,62 4414 Expenditures for urban development of land 970.000,00 4415 Expenditures for equipment 26.444.615,34 4416 Expenditures for investment maintenance 14.297.560,00 4417 Expenditures for supplies 255.000,00

45 Borrowings and loans 3.985.003,28 451 Borrowings and loans 3.985.003,28

4511 Borrowings and loans to non-financial institutions 5.003,28 4513 Borrowings and loans to individuals 1.830.000,00

4515 Other borrowings and loans 2.150.000,00 46 Debt repayment 28.790.000,00

461 Debt repayment 15.690.000,00 4611 Repayment of securities and loans to residents 3.020.000,00 4612 Repayment of securities and loans to non-residents 12.670.000,00

462 Repayment of guarantees 600.000,00 4622 Repayment of guarantees abroad 600.000,00

463 Repayment of liabilities from previous years 12.500.000,00 4630 Repayment of liabilities from previous years 12.500.000,00

47 Reserves 9.207.949,28 471 Current budget reserve 7.707.949,28

4710 Current budget reserve 7.707.949,28 472 Permanent budget reserve 1.500.000,00

4720 Permanent budget reserve 1.500.000,00

The Law on Budget of Montenegro for 2008

Official Gazette of Montenegro, number 17/07 6

CURRENT BUDGET EXECUTION

Article 5

Minister of Finance shall be responsible for budget execution.

Article 6 Spending units are obliged to submit to the Minister of Finance monthly spending plans for the funds approved by the budget, no later than ten days upon the adoption of the Budget. Spending units shall use the funds determined by the Budget according to the schedule determined in the budget spending plans, approved by the Minister of Finance. If the planned funds are not sufficient, spending units shall prepare and propose to the Ministry of Finance the amendments to the schedule of approved funds.

Article 7 Spending units may contract commitments up to the amounts that are approved by the Ministry of Finance in the spending plans.

Article 8 Revenues realized by spending units from their own activities, based on legal authorizations, shall be used solely for financing expenditures of these spending units, up to the amounts planned by the Budget. Spending units expenditures that are financed through grants, foreign loans and revenues that are earmarked in accordance with the Law, shall be executed in the generated amount, within the amount planned by the Budget. Spending units from paragraphs 1 and 2 of this Article may negotiate commitment