Montenegro collected €1.187 billion in budget revenue during January-May 2026, but expenditure increased at a faster rate, resulting in a €96.8 million deficit for the period. Revenue was €90 million, or 8.2%, higher than in the first five months of 2025. Collections also exceeded the five-month budget projection by €24.4 million, or 2.1%. The Ministry of Finance attributed the stronger performance across major tax categories to higher economic activity, employment and wages, alongside improved tax discipline.
Budget expenditure reached €1.284 billion through May, an annual increase of €117.7 million, or 10.1%. According to the Ministry, the rise was primarily associated with higher mandatory expenditure obligations.
The resulting deficit amounted to 1.13% of projected GDP. Actual spending nevertheless remained below the amount planned for the first five months. Expenditure was €106.4 million, or 7.7%, lower than budgeted, reflecting the timing of expenditure obligations. The difference between planned and executed spending means that the fiscal position recorded through May may change as expenditure scheduled in the budget is implemented later in the year.
The revenue figures reflect stronger economic conditions, with higher employment, wages and economic activity contributing to the expansion of the government’s revenue base. At the same time, the increase in mandatory spending has been faster than revenue growth. The first five months therefore show stronger revenue collection alongside continued expenditure pressure. The fiscal outcome will depend on the development of both components during the remainder of 2026. Continued revenue growth combined with slower expenditure increases would improve the fiscal position, while expenditure growth remaining above revenue growth would maintain pressure on the budget balance.
