Montenegro recorded more than €2 billion in budget revenue during the first eight months of 2026, while capital expenditure increased by more than half, according to Finance Ministry data. Revenue reached €2.006 billion, representing a 9% year-on-year increase and exceeding the planned amount by €20.9 million.
Tax receipts increase across major categories
Several key revenue categories recorded strong growth. Personal income tax receipts rose 22.9%, while social contributions increased 12.7%. Excise revenue was up 7.3%, and VAT receipts increased 6.1%. The revenue performance reflects higher employment, wages and consumption, while improved enforcement and digitalisation have also contributed to stronger collection.
Capital expenditure rises 50.2%
Capital spending increased 50.2% to €232.6 million during the January-August period. August alone accounted for €63.4 million of capital expenditure, indicating a faster pace of infrastructure implementation during the year. The increase comes as Montenegro advances projects in transport, energy, water and environmental infrastructure while continuing preparations for EU accession.
Capital project implementation has historically faced delays linked to procurement procedures, expropriation and incomplete documentation. The increase in spending therefore coincides with faster project execution, although maintaining that pace will depend on the readiness of projects during the final months of the year.
Budget deficit remains below plan
Montenegro recorded a budget deficit of €146.2 million in the first eight months, equivalent to about 1.7% of estimated GDP. The deficit was approximately €45.2 million below the planned level.
The budget figures show revenue growth occurring alongside increased capital expenditure rather than the additional revenue being used solely to reduce the deficit.
New fiscal pressures emerge for 2027
The stronger revenue position provides additional fiscal capacity as Montenegro prepares further spending and policy changes. The government is preparing the proposed Euro Model wage and tax reform for 2027, while reductions in fuel excise duties and additional social spending could reduce part of the available fiscal buffer.
For investors, the fiscal figures show Montenegro moving into a period of higher capital expenditure without a corresponding deterioration in the budget deficit during the first eight months of the year. The remaining months will determine whether the government can sustain the faster pace of infrastructure spending while keeping revenue growth ahead of permanent spending commitments.
