Montenegro’s budget revenues for the first five months of 2025 amounted to 1.09 billion EUR, representing 13.8% of GDP, which is an increase of 8.5 million EUR or 0.8% compared to the same period last year, according to the Ministry of Finance.
All key tax categories showed growth in collection compared to both the previous year and the planned figures. Corporate income tax reached 199.8 million EUR, marking a significant increase of 14.1 million EUR or 7.6% compared to the same period in 2024, and exceeding the plan by 6.9 million EUR or 3.6%. Personal income tax collected amounted to 38.7 million EUR, which is 6.7 million EUR or 20.9% higher than the same period last year and in line with the plan.
Value-added tax (VAT) collection totaled 487.2 million EUR, up by 52.1 million EUR or 12% compared to the previous year, and 1.7 million EUR or 0.4% above the planned level, reflecting dynamic economic activity and a reduction in the informal economy. VAT refunds amounted to 55.4 million EUR, 5.6 million EUR or 11.3% higher than in the same period in 2024.
Excise tax revenues reached 135.8 million EUR, up by 10.3 million EUR or 8.2% compared to the same period in 2024 and exceeding the planned amount by 5.2 million EUR or 4%.
Other revenues amounted to 19.6 million EUR, which is 7.8 million EUR or 66.1% above plan, but 9.6 million EUR or 32.8% lower than in the same period of 2024. This discrepancy is mainly due to the timing of payments related to the Central Bank of Montenegro’s profit transfers for 2022 and 2023, and the economic citizenship program. In April 2025, the Central Bank transferred 4.9 million EUR for the current year.
In May alone, total budget revenues amounted to 199.5 million EUR, an increase of 4.3 million EUR or 2.2% compared to May of the previous year.
Budget expenditures for the first five months of 2025 totaled 1.14 billion EUR, representing 14.3% of the estimated GDP.
Current expenditures during this period amounted to 459.03 million EUR. Higher spending was recorded for interest payments to non-residents, while spending on current maintenance and other expenses was lower than planned.
Social protection transfers reached 450.20 million EUR, achieving 101.7% of the plan and increasing by 51.24 million EUR or 12.8% compared to the same period last year. Transfers to institutions, individuals, and the non-governmental and public sectors amounted to 160.84 million EUR, which is 5.86 million EUR or 3.5% below the planned amount.
Capital expenditures for the observed period amounted to 40.15 million EUR, with May’s capital spending at 8.32 million EUR, marking a 1.21 million EUR or 14.5% increase compared to May 2024.
In May, total expenditures were 235.3 million EUR, which is 3.9 million EUR or 1.6% below the plan, but 21.3 million EUR or 10% higher than in May of the previous year.
The deviation from the plan is mainly due to lower than planned current expenditures, which totaled 90.09 million EUR or 91.3% of the plan, and a smaller realization of reserves at 0.02 million EUR or 0.8% of the plan. Higher than planned spending was mainly due to transfers to institutions, individuals, and the non-governmental and public sectors, which reached 42.18 million EUR or 140.6% of the plan.
Among current expenditures, subsidies were higher than planned, amounting to 4.65 million EUR, or 27.4% above the plan, primarily subsidies for employers hiring persons with disabilities through the Employment Agency. There was also slightly higher spending than planned on social protection transfers, which reached 90.67 million EUR, or 2.6% above plan, mainly through the Health Insurance Fund and the Ministry of Social Welfare, Family Care, and Demography for social, veterans, and disability rights.
Higher than planned transfers to institutions, individuals, and the non-governmental and public sectors were mainly related to health care funding through the Health Insurance Fund.
Considering the realized revenues and expenditures, Montenegro recorded a budget deficit of 45 million EUR in the first five months of 2025, equal to 0.6% of the estimated GDP, which is 61.2 million EUR better than the planned deficit of 106.1 million EUR. Additionally, a current expenditure surplus of 8.4 million EUR was recorded.
The report on budget revenue execution covers the period from January to May 28, 2025. The remaining working day of May 29 was accounted for as June revenue due to adjustments related to the Central Bank of Montenegro’s new payment system integration with the Tax Administration’s information system.
