Montenegro’s mid-year budget revenues demonstrate stability and growth in key tax categories, with a lower-than-planned deficit, the Ministry of Finance announced.
Total state budget revenues reached €1.3228 billion, representing 97.3% of the plan and a 1% increase compared to the same period last year.
Key tax revenues showed significant growth:
- Corporate income tax collected €210.1 million, up 9.9% year-on-year and 5.9% above the plan.
- Personal income tax revenues rose 23.3% to €46.6 million.
- Value-added tax (VAT) revenues totaled €602.1 million, an increase of €66.1 million (12.3%) compared to last year.
The higher VAT refunds—over 20% more than last year—reflect dynamic economic activity and timely compliance by businesses.
Excise tax revenues amounted to €172.9 million, up 7.9% from last year and 1.3% above the plan. Other revenues exceeded expectations by 62.5%, despite the absence of one-off payments seen in 2024.
June budget revenues were €225.8 million, 2.1% higher than the previous year. Tax collection in June surpassed both the plan and last year’s results by over €12 million, aided by proactive work from the Tax Administration and Customs.
Expenditures aligned with the plan, with capital spending significantly exceeding expectations. Total expenses amounted to €1.4302 billion, including capital investments of €56.5 million—double the planned amount. June capital spending alone was €23 million, 371% above plan, primarily for military procurement under a bilateral agreement with France.
The overall mid-year budget deficit stands at €107.3 million (1.4% of GDP), €9 million better than planned, underscoring responsible and sustainable fiscal policy.
The Ministry of Finance remains committed to strengthening the country’s fiscal stability.
