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05-Aug-2024
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Mugosha: Inflation has devalued salary growth

Author: M.J.

The administrative economy after 2020, which did not do anything on the development of the economy, in addition to standard imported inflation, contributed to drastic price growth and the representative of the European Union and the head of the Social Democrat Parliament Club Boris Mugoš.

Mugosa is commenting on salaries and prices in Montenegro, stated that the story was that salaries grew more than inflation and that the standard improved is unfounded in reality for several reasons.

-Barati with statistical data that in the previous 4 years, the average prices increased by 30% is essentially insulted by a large number of citizens, when it is clear that the prices of food products are mostly used 70, 80, 100% and in some cases more than double; Chemistry prices also increased significantly; Prices of various services (hairdressers, electricians, plumbers, etc.), food in restaurants, accommodation in hotels, fuels, etc. He pointed out.

He believes that it would be very important, where the long period insists, to publish the medial salary (represents the amount of earnings compared to which 50% of employees had a lower salary, while the remaining 50% of employees had more) which is more realistic indicator than average than average. . This for reasons, as indicator of the average earnings is essentially hiding the fact that in Montenegro, a large number of citizens receive modest and small earnings and a smaller part of the medial earnings.

- I repeat the hundredth time that salaries had to be larger and I pointed out while I was in power, but also an administrative economy after 2020, which did not do anything in the development of the economy, in addition to the standard Imported inflation, contributed to drastic growth prices and impair the administrative increase in salaries - said Mugoša.

He further states that we came to the situation that salaries in the overcrowded public sector are significantly higher than in private, and the private sector is dominant "creating" the budget's income.

It also points to the accumulation of public administration, the growth of contracts on work, consulting services, etc. That is, continuous growth of public spending, which says, makes public finances tent to a serious level, with projected over five billion euros from 2020 to 2027, which is becoming more expensive from year to year.

Mugosa finds that a good part of that indebtedness goes to return debts and capital projects, but also that the amount could be much smaller that public spending is not influenced, but to service the expenses for capital projects through its rationalization from current revenues and earlier. Debts.

- without saying how much and whether new capital projects have been launched in the previous four years, what is the dynamics of the implementation of existing projects, how many new investors have come to Montenegro, etc. The economy must be kept on a systemic and long-term sustainable way (not before 2020), not a lnut-politically and populist who can bring a short-term benefit to someone but a long-term choker and vasting Montenegrin public finance system - concludes Mugoša.

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