The best indicator of the state of our local finances, in addition to many others, is the debt of municipalities.
The total debt of our municipalities at the end of 2014 amounted to 166.94 million euro. The most indebted municipality is Budva, with the total debt of over 65 million euro (more than the sum of total budgets of all municipalities in the northern region), followed by the Capital city Podgorica, Nikšić, Herceg Novi, Bijelo Polje, Pljevlja…
Overall, the debt of municipalities has decreased in comparison to 2013, but only for 2,6%. Some municipalities, however, have additionally increased debt during 2014 (Herceg Novi, Bar, Kolašin…).
The total amount of outstanding liabilities related to expenditures that are contracted, but not paid, is 119.19 million euro.
The municipalities with the highest amount of outstanding liabilities for the salaries and wages of their employees are Municipality of Berane, Bijelo Polje, Budva… Outstanding commitments for capital expenditures amount 24.61 million euro. The only local governments without outstanding obligations are Municipality of Podgorica and Rožaje.
Bearing in mind that these are the data delivered to the Ministry of Finance by the municipalities themselves, they should be considered with a pinch of salt. State Audit Institution’s reports on budgets of local governments show that the official municipal data cannot always be trusted.