Montenegro’s municipalities ended the previous year with a budget deficit, a sharp increase in spending, record amounts of unpaid obligations and a significant rise in tax debt, according to a report from the Ministry of Finance.
Although all 25 municipalities generated a total revenue of 593.76 million EUR, which is 107.5 million more than in 2023, their expenses reached 452 million EUR, an increase of 93 million compared to the previous year. The year closed with a deficit of 2.04 million EUR and outstanding obligations totaling 68 million EUR, reported “Vijesti.”
At the same time, the credit debt amounted to 96.17 million EUR, and tax debt exceeded 122 million EUR, growing by 41 million EUR year-over-year. Expenditures for gross salaries increased by more than 7.7 million EUR.
The number of employees in municipalities and their public institutions and companies reached nearly 16,000. This figure does not include data for temporary contracts, as it only reflects those employed on fixed or indefinite terms.
In terms of revenue structure, current revenues (taxes, fees, and other current income) dominated, amounting to 368.86 million EUR. This was followed by proceeds from loan repayments and funds carried over from the previous year at 126.04 million EUR, donations and transfers at 91.16 million EUR, proceeds from asset sales at 5.85 million EUR, and loans and credits at 1.85 million EUR.
These figures show that, in addition to basic income from taxes, fees, and charges, a significant portion of local budgets were funded through carryover funds from the previous year and transfers from other sources.
The Ministry of Finance explained that, compared to 2023, the largest increase was seen in funds carried over from the previous year, totaling 45.53 million EUR.
The majority of the carryover funds were allocated for the implementation of capital projects.
The total budget expenditures of all municipalities last year amounted to 452.09 million EUR, an increase of 93.42 million EUR compared to 2023.
By December 31 of the previous year, the total outstanding obligations of local governments reached 68.41 million EUR.
