The twelfth Summit of Governors, Finance Ministers, and Tax Administration Directors concluded in Bečići, emphasizing the importance of increased regional cooperation and open dialogue to address numerous challenges in a turbulent global environment.

During the event, experts underscored that effective management of public investments is crucial for achieving economic stability and resilience, particularly in light of slow growth within the Eurozone.

A focal point of the discussions was the need for projects to be selected based on feasibility, transparency, and their broader economic significance.

Additionally, the summit raised questions regarding the adequacy of fiscal space for potential economic incentives and the alignment of fiscal and monetary policies.

Blagoje Paunović, President of Serbia's Fiscal Council, highlighted the significance of quality public spending through investments, pointing to Serbia's approximately 7% capital investments in GDP, positioning it as a leader alongside Estonia.

Despite this achievement, he expressed concerns regarding insufficient transparency in decision-making processes surrounding public capital investments, which he argued have strayed from legal frameworks, leading to prolonged investment timelines.

Bojan Paunović, Director General of the Budget Directorate in Montenegro's Ministry of Finance, noted the country's transformative journey, particularly regarding the implementation of best practices that arose during the pandemic's crisis period.

With economic pressures mounting from the energy crisis and the aftermath of COVID-19, he discussed the necessity for fiscal adjustments, including tax reliefs and additional state transfers to citizens to mitigate adverse effects.

Mario Demirović, Director of the Customs Administration of Croatia, reported that the reform cycle in Croatia has gained momentum, enhancing strategic-level operations aimed at increasing efficiency within regional economies.

He emphasized the importance of fiscalization processes that have been integral to administrative efficiency improvements and resource management.

On the challenges faced by tax administrations, Miroslav Đinović from Serbia’s Tax Administration noted improvements, including plans to address staffing shortages by recruiting 1,000 new employees.

He highlighted advancements in automation and digitization, stating that most processes eligible for technology integration have already been implemented.

He emphasized a proactive approach to targeting tax compliance issues while incorporating educational efforts aimed at increasing public awareness regarding fiscal responsibilities.

Sava Laketić, Acting Director of Montenegro's Tax Administration, corroborated that the country faces similar challenges as its regional peers, particularly low levels of digitalization and outdated systems.

Efforts focused on modernizing business models within the tax administration have begun to yield results in reducing the numbers of irresponsible taxpayers.

In discussions on the fight against gray economy practices, Goran Maričić from Republika Srpska's Tax Administration provided insights into the growth of public revenue collections as evidence of enhanced efficiency.

He reported that proper control planning has led to significant detection rates of tax violations, contributing positively to public finances.

Admir Omerbašić, Director of the Tax Administration of the Federation of Bosnia and Herzegovina, revealed that the region has experienced substantial growth in tax revenue, with a reported increase of 12.6% for the current year compared to the previous year, highlighting the fiscal impact of improved salary levels.

The summit also acknowledged the pressing need for modernization within tax systems across the region, addressing the swift technological advancements that governmental agencies are slow to adopt, and the persistent staff shortages that hinder progress.

Tax administrations are engaging in projects aimed at the digitalization of systems and processes, which are deemed essential for enhancing operational capacities and addressing public awareness on legal compliance.

Ilir Murtezaj, Director of Kosovo’s Tax Administration, shared noteworthy progress in the successful modernization of tax collection methods, reporting a 90% automation rate in the revenue collection process.

He reiterated the necessity of continuous reforms to maintain and improve upon the gains in revenue collection.