Montenegro’s budget sees substantial revenue growth in first months of 2024

From January to the end of April this year, Montenegro’s budget revenues reached €896.1 million, or 12.7% of the estimated GDP, representing an increase of €98.7 million or 12.4% compared to the same period last year.

Data from the Ministry of Finance reveals that revenue targets were surpassed by €86.6 million, or 10.7%, compared to the planned amount for this four-month period.

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• The most significant growth was observed in corporate income tax, personal income tax, contributions, and value-added tax (VAT) – the Ministry reported.

Corporate income tax revenue amounted to €179.2 million, which is €50.7 million or 39.4% above the plan and €59.3 million or 49.4% higher than the same period last year.

Personal income tax revenue reached €24.1 million, exceeding the plan by €5.8 million or 32.1%, and surpassing last year’s figure by €9.1 million or 60.7%.

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• Contributions totaled €173.2 million, exceeding the plan by €18.2 million or 11.8%, and these revenues were €25.8 million or 17.5% higher compared to the same period last year – the data shows.

The Ministry highlighted that, as of April, a total of €346.9 million in VAT revenue was collected, marking an increase of €45.6 million or 15.1% compared to the same period last year, and exceeding the four-month plan by €3.7 million or 1.1%.

Excise duties also saw growth, amounting to €93.9 million from January to April, which is €11.4 million or 13.8% more than the same period last year, though €1.5 million or 1.6% below the planned amount.

• Additionally, other revenues increased by €5 million or 21.6% compared to the plan, mainly due to payments from the Central Bank of Montenegro for profits from 2022 and 2023 totaling €9.1 million, refunds from the COVID-19 support project amounting to €3 million, and proceeds from the Economic Citizenship Program amounting to €3.1 million. However, this category saw a decrease of €19.7 million or 41.2% compared to the same period last year, primarily due to significant one-time revenues in the first four months of 2023 – the Ministry explained.

Budget revenues in April totaled €317.5 million, up by €62.6 million or 24.6% compared to the same month last year. April revenues also exceeded the plan by €40.9 million or 14.8%.

• Budget expenditures for the period from January to April this year amounted to €841.5 million, or 12% of the estimated GDP, which is €69.7 million or 7.6% less than planned. Compared to the same period last year, expenditures increased by €156.4 million or 22.8%, with the largest deviations in pension and disability insurance payments, primarily due to increased minimum pensions, transfers to institutions, particularly public health institutions, and increased gross wages due to the adoption of branch collective agreements that raised public sector salaries in 2023 – the statement said.

Current expenditures amounted to €341.2 million, 9.5% below the plan due to slower payment dynamics than planned in the previous months, particularly in the category of other expenses. Additionally, lower-than-planned expenditures were recorded in transfers to institutions, individuals, non-governmental and public sectors by €10.6 million or 8.2%.

• The capital budget, including capital expenditure positions and some positions within service expenses and other categories, amounted to €42.89 million from January to the end of April, which is about €23 million more than the same period in 2023, or 113% of the planned amount. In this period, execution also exceeded the plan by €2.26 million – the statement highlighted.

April’s budget execution was slightly above plan, by 1%.

The capital budget amounted to €17.86 million, €3.27 million or 22.4% above plan.

• From January to April, a budget surplus of €54.6 million was achieved, equivalent to 0.8% of the estimated GDP. In April alone, a surplus of €59.4 million was recorded – concluded the Ministry of Finance.