The Draft Law on the Budget for the coming year, the Montenegrin Government incrised expenditures for 9.5 million based on several budget lines, for which the Research center of MANS previously found that in the pre-election period to a significant extent are used for electoral bribing in favor of the ruling Democratic Party of Socialists (DPS).
Research Center of MANS made an analysis of the Draft Law on the Budget for 2016, which showed that in certain ministries and state funds expences are significantly increased for severance payments, subsidies and state aid, transfers to institutions and municipalities, budgetary reserves, as well as expenses of one-time social assistance and transfers to individuals.
The biggest increase of almost four million the Government in the next year planned for severance payments to workers who are made techological surplus. The Budget for the current year for these purposes allocated 7.4 million euros, while in the next year is projected payment of 11.3 million, of which nine million is the Ministry of Finance and 2.3 million in the Labor Fund.
In the explanation of the proposed Law on the Budget it is stated that the Ministry of Finance on the basis of severance, will make payments to workers of Aluminium Plant Podgorica (KAP) that due to bankruptcy are entitled to a pension, then those who are technological surplus at all consumer units, and if the “need arises to solve social programs for employees at the companies”. Such a broad definition undoubtedly opens up space for the redirection of funds or “pumping” money in the pre-election period.
At the same time the Labor Fund for severences to employees will pay 2.3 million euros. Previously collected documentation of Research Center of MANS showed that the Labor Fund in the pre-election periods paid out the most of severences, while the affair Snapshot revealed that some DPS officials sought advantage in severance payments to be given to workers who support that party.
In regards to expenditures for subsidies and state aid is planned amount of 15.7 million euros, or about 600 thousand more than in this year, which is mainly due to increased expenditures on subsidies in agriculture. Specifically, for these purposes has been allocated 9.9 million euros, as opposed to 9.3 million, that was allocated for the current year.
What is particularly interesting is that the Ministry of Agriculture planned and 3.6 million euros for the payment of debt for taxes and contributions for employees of Tobacco Factory that is in bankruptcy, for the period from 2010 to mid-2015. The workers of this company recently stopped the production and engaged in strike in the administration building demanding upaid salaries.
The Ministry of Economy for the payment of subsidies planned 2.3 million euros, which includes subsidizing electricity bills for the category of socially vulnerable households, as well as state aid to small and medium-sized companies, and industry cluster. Such projects can provide new employments and MANS has previously found that the Ministry of Economy invitations for the allocation of projects adjusts them to pre-election periods.
In addition, the Government with the Budget Draft for next year with the Ministry of Labor and Social Welfare and the Pension and Disability Insurance (PIO) for transfers to municipalities and institutions allocated amount of 2.6 million euros, which is even five times more than this year, which has allocated half a million euros.
Thus, the Ministry of Labor will transfer 910 thousand euros to municipalities, and the funds are earmarked for the development of social services, which essentially allows for new employment. It is very interesting that on this budget line is planned and the payment for compensation to workers of Niksic-based company Montavar Metalac, who last year before the Government engaged in hunger strike for being unhappy that they were not paid salaries and contributions.
At the same time, the Labor Fund will posses 1.7 million euros, of which half a million euros is planned to co-finance the housing needs of the most vulnerable members of pensioners, while the remainder relates to the reconstruction of the hotel PIO in Ulcinj. In the current year, which is a non-elective, in this budget item of the Pension Fund is projected only 300 thousand euros.
The significant increase in expenditures on the basis of several budget lines, which in previous years were abused for the payments in election cycles, leads to the suspicion that the Government Budget for next year designed for electoral purposes in order DPS to make a political advantage on the field, and that will be an introduction for a new electoral corruption which we witnessed in the previous years.
This text is made with the support of the European Union within the project “Zero tolerance to corruption”. The contents of this article is the sole responsibility of the Network for Affirmation of Non-governmental Sector – MANS, and opinions contained herein shall not in any case be considered positions of the European Union.
The timetable shows the scheduled expences from budget possitions for which MANS previously founded that the payments from them multiply in pre-election periods
Budžetska rezerva uvećana za 1,7 miliona
The Government has significantly increased its resources and the position of the current budget reserve, so in the next year planned expenditure of 14.8 million euros, which is for 1.7 million more than is allocated for the current year as a non-elected.
Money from the budget reserves is used mainly for expenditures that could sufficiently not be predicted in advance, but that budget line represents an ideal source of “pumping” money in the pre-election period, particularly for the payment of social assistance to individuals.
In the explanation of the budget proposal for the year of 2016 only briefly lists several items where spending money from the reserves is planned, of which at least two can significantly be associated with electoral period, and that the co-financing of projects from the IPA funds, including IPARD like, and subsidizing projects for the creation of new jobs, according to the Regulation on stimulation of direct investments.
For a one-time payments 825 thousands euros
In position of three state bodies – the Ministry of Labor and Social Welfare, Pension Fund and the Ministry of Interior, in the next year for one-time social payments is planned total of 825 thousand euros, as opposed to 470 thousand euros which has been allocated for this year.
Thus, the Ministry of Labor will posses 150 thousand euros for payments to socially vulnerable citizens, and the Pension Fund with 300 thousand euros to help the most vulnerable pensioners, who are mostly awarded in cash or groceries. These amounts are at the level of the current year.
However, it is unclear multiple increase of funds for one-time social payments from the position of Ministry of Interior or the Police Administration where for the next year was allocated 375 thousand euro. In 2015, for these expenditures was planned only 20 thousand euros.
The Ministry of Labor money for one-time social payments forwards the centers for social work, which distribute it to users. Research Center of MANS earlier through cases of welfare payments in Pljevlja uncovered a scheme by the DPS used to buy votes on the field through the payments of compensation for materially vulnerable individuals.
Finally, for other transfers to individuals is allocated 3.7 million euros, or 670 euros more than this year. Almost the entire increase – 650 thousand euros – is planned by the Ministry of Agriculture and refers to expenses for old-age benefits.
Ines Mrdović
