In the Draft Law on the Budget for 2016, the Government of Montenegro has increased expenditures of individual ministries and state funds for €9.3 million compared to the previous year on several budget items, for which MANS Investigation Center previously found to be significantly used for electoral abuse. Such expenditures are planned for severance payments, subsidies, transfers to institutions, municipalities and individuals, budgetary reserves and one-off welfare payments.
Largest increase for severance payments, transfers to institutions and municipalities and budgetary reserve: The comparative analysis of the Budget Law of Montenegro for 2015 and the Draft Budget for 2016, it is evident that the greatest increase of expenditure is planned for severance payments to workers who have been made redundant. On this basis, in 2015 the allocated amount was €7.3 million[1], while in the next, the year of election, planned expenditure is €11.3, which is an increase of €3.9 million. The funds in the amount of nine million are at the Ministry of Finance, while 2.3 million is projected at the Labor Fund.
When it comes to budget of the Ministry of Finance, it has been explained that the severance payments are intended for redundancies in all spending units, as well as to settle commitments towards the employees of the Aluminum Plant in Podgorica and in case there is a need to address welfare programs for employees in companies. Such a broad definition has left a large space to think that severance payments may be used in the pre-election period to directly influence the electoral will of the employees.
At the same time, the Labor Fund will administer €2.3 million for severance payments to employees of companies that had entered into bankruptcy and in the meantime ceased to exist. Earlier MANS studies [4] showed that the Labor Fund paid severances mostly in pre-election periods, while the affair “Tape Recording”[5] revealed that some officials of the ruling Democratic Party of Socialists insisted that severance payments be made primarily to employees that supported the party.
In addition to funds for severance payments, he budget item relating to transfers to institutions and municipalities has also significantly increased. The Budget Law for 2015 allocated an amount of half a million, while for 2016 the amount planned is 2.6 million, which is the fivefold increase (increase of €2.1 million). The funds will be at the disposal of the Ministry of Labor and the Pension and Disability Insurance Fund.
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