Montenegro’s public finances demonstrated stability in 2025, bolstered by an increase in tax revenues and overall economic growth. Total government revenues reached €2.873 billion, accounting for 35.4% of the country’s GDP, reflecting a 4.3% year-on-year growth.
The surge in tax revenues was notable across several categories. Personal income tax revenues saw a significant rise of 27.1%, while value-added tax (VAT) revenues increased by 14.8%. Additionally, excise duties rose by 9.4%, and corporate income tax revenues experienced a growth of 9.1%.
On the expenditure side, government spending totaled €3.1948 billion, representing 39.3% of GDP, which resulted in a fiscal deficit of €321.6 million, or 3.96% of GDP. Despite this deficit, the current budget operations managed to achieve a slight surplus of €9.54 million, indicating that the deficit primarily stemmed from investment-related spending.
As Montenegro continues to finance projects related to infrastructure, tourism development, and energy sector modernization, maintaining fiscal stability will be essential for the country’s economic progress.
