Budva has reported the collection of approximately 57 percent of its record €79 million annual budget during the first half of the year, ahead of the peak tourism revenue quarter. Revenue from personal income tax and local surtaxes has risen by about 7–8 percent compared to the previous year, with property and property transfer tax collections also exceeding figures from 2025.
The municipality is contemplating a budget revision that could reflect increased tourism-related revenues during the July-August season. However, the revenue structure remains cyclical, as it is heavily influenced by property transactions, tourism activities, communal charges, and fees related to construction, making it sensitive to both seasonal fluctuations and the coastal real estate market.
In terms of infrastructure development, Budva has awarded three contracts totaling over €30 million. The company Bemax has secured a €7 million contract for road rehabilitation projects along sections of the Adriatic Highway and streets such as Žrtava fašizma and Kanjoša Macedonovića. Additionally, a consortium comprising Serbia’s Gemmax Gradnja and Montenegro’s Viamont has received an €18 million contract for constructing a new road across the Grđevica river corridor, along with a €5.5 million contract for two prefabricated parking garages.
The awarded contracts will translate increased municipal revenues into tangible urban investments; however, they also necessitate heightened oversight. Construction in a densely populated tourist city must be carefully managed to navigate traffic, utility access, seasonal conditions, and drainage issues. The municipality is tasked with ensuring disciplined certification of quantities and managing variations to keep the initial €30.5 million budget from escalating during the construction phase.
Additionally, Budva has allocated around €500,000 to assist tenants and subsidize housing loan costs for younger residents. This initiative aims to mitigate the social impacts of a property market driven by tourism and foreign investment that have inflated rents and purchase prices beyond local wage growth. While this program is financially manageable within the current budget, it addresses affordability challenges rather than expanding the permanent housing supply.
