Republic of Montenegro: Public Expenditure and ... - Vlada Crne Gore

106 Annex 4
C. Public Expenditure on Transport (2003-05)
In 2003, 93 percent of the transport sector spending went to Roads, Railways and
Administration all together, while 4 percent went to civil aviation and around 3 percent to
maritime transport. The budget structure comprised roads, railways and administration,
together, while Airports of Montenegro and Maritime transport (Ports of Bar and Kotor) were
counted separately. For all sub-sectors but civil aviation, expenditures were basically recurrent
expenditures (Table A4.4). This confirms that very little was devoted for roads and railways
improvement and maintenance. Expenditures on Airports of Montenegro composed of 84 percent
capital investments and 16 percent recurrent expenditures.
Table A4.4. Montenegro Transport Sector Public Expenditures, 2003
2003
Description
Actual
(euros)
% of Total
Transport
% of GDP
Roads, Railways and Administration
Recurrent expenditures 5817356 92.54
Capital expenditures 50000 0.80
Total expenditures 5867356 93.34 0.41
Civil Aviation
Total recurrent expenditures-JP 37781 0.60
Capital expenditures 200000 3.18
Total Civil Aviation 237781 3.78 0.02
Maritime Transport
Recurrent expenditures 177498 2.82
Capital expenditures 3669 0.06
Total Maritime Transport 181166 2.88 0.01
Total Transport sector
Recurrent expenditures 6032634 95.96
Capital expenditures 253669 4.04
Total expenditures 6286303 0.44
Source: Ministry of Finance, April 2006.
In 2004, of total transport sector spending, 51 percent went to roads, 40 percent to railways, 6
percent to maritime and 2.5 percent to administration (Table A4.5). The Ministry of Transport
and Maritime Affairs introduced a program-budget in the transport sector in 2004. Accordingly,
the budget structure comprised four programs: (i) National and Regional roads; (ii) Railways;
(iii) Maritime transport; and (iv) Administration. About 20 percent of transport sector
expenditures were capital expenditures while 80 percent were recurrent expenditures. Capital
investments occurred in the Roads and Railways sub-sectors. Starting 2004, civil aviation (at the
union level with Serbia) and airports became self-sufficient with user charges and do not get any
budget from the national budget.
In 2005, of total transport sector expenditure, 58 percent went to roads, 38 percent to railways, 3
percent to maritime transport and 1 percent to administration. The latter two decreased by half
relative to 2004. About 48 percent of transport sector expenditures were capital expenditures
while 52 percent were recurrent expenditures (Table A4.5). More capital investments were made
in 2005 for the Roads sector with the construction of the Sozina Tunnel with the assistance of