Fiscal Decentralisation and Local Government Financing in Montenegro from 2002 to 2015


  • Sanja Kmezić University of Graz, Teaching Faculty, Centre for Southeast European Studies, Schubertstrasse 21/1, 8010 Graz
  • Jadranka Kaluđerović University of Donja Gorica, Donja Gorica, 81000 Podgorica
  • Mijat Jocović University of Montenegro, Faculty of Economics Podgorica, Jovana Tomaševića 37, 81000 Podgorica
  • Katarina Đulić Sigidunum University, Faculty of Economics, finance and administration, Bulevar Zorana Đinđića, 10000 Belgrade



fiscal decentralisation, local government financing, Montenegro, economic crisis, macroeconomic instability, local economic development


This article examines the fiscal decentralisation process and local government financing in Montenegro from 2002 to 2015 by focusing on the key legislative changes that occurred during the period under observation, as well as on the fiscal impact these changes and the economic crisis have had on municipal budgets. The analysis identifies two distinct phases of municipal financing in Montenegro. In the first phase (2003-2008), the Republic adopted legislation that strengthened the role and fiscal autonomy of local governments. During the second phase (2008-2015), several of the national government’s centralistic policies came into force. Together with the effects of the economic crisis, they deteriorated both local public finance and macroeconomic stability and hindered local economic development.

Author Biographies

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Conference Paper (Annual Conference 2020)