Montenegro starts 2025 with a positive trend, showing growth across all major budget revenue categories compared to January 2024. In January 2025, budget revenues amounted to €156.2 million, an increase of €5.2 million or 3.5% compared to the same month in the previous year, according to the Ministry of Finance.
The Ministry highlights that the first month of 2025 is marked by dynamic economic growth and an acceleration in business activity.
In January 2025, corporate income tax revenues amounted to €4.8 million, an increase of €2.8 million or 143.9% compared to the same month in 2024. Personal income tax revenues totaled €3 million, an increase of €1 million or 51.7% compared to January 2024.
The government, considering the principles of macroeconomic stability and the sustainability of public finances, has implemented a rise in the minimum wage across the economy. The minimum wage for level V qualifications is €600, while for level VI and higher, it stands at €800.
As a result, the average net salary in December 2024 was €1,012, significantly strengthening the base for personal income tax revenues. Social contributions amounted to €16.6 million, an increase of €3.1 million or 22.6% compared to the same month in 2024.
The government also introduced legislative changes to reduce the tax burden on labor, with lower pension contribution rates. These changes included reducing employee contributions from 15% to 10% and eliminating employer contributions (from 5.5% to 0%), leading to strong growth in both minimum and average salaries in the economy. As a result, the revenue from contributions also grew compared to the same month last year.
Value-added tax (VAT) revenue for January 2025 reached €96.6 million, an increase of €5 million or 5.5% compared to the same month in 2024. The significant growth in VAT revenue is partly due to increased consumption resulting from higher disposable income. Despite significant net VAT collection, VAT refunds in January 2025 were €13.9 million, an increase of €11.8 million compared to January 2024.
There was also a rise in excise tax revenue, partly due to the expanded tax base, which now includes non-carbonated drinks with added sugar, as well as the introduction of excise duties on “still” wines and fuel marking. Excise tax revenues amounted to €23.7 million, an increase of €1.1 million or 4.9% compared to January 2024.
Taking into account the revenue and expenditures, the budget recorded a surplus of €2 million in January, representing 0.03% of the estimated GDP, which is €62.5 million better than the planned deficit of €60.5 million.
Despite challenges in the first month, caused by temporary financing and the delayed adoption of the budget by the Assembly, the Ministry of Finance promptly met all regular obligations, preserved the stability of public finances, and maintained the economic growth trend. This performance further confirms the high level of professionalism and responsible approach to the national budget, as well as the rational and competent management of public funds, according to the Ministry of Finance.
