Montenegro’s government approved a proposed revision to the 2026 budget on November 5, raising the projected fiscal deficit by 70 million euros to 348 million euros, the Finance Ministry said. The plan would also increase new borrowing to 568 million euros, while projected expenditure rises faster than expected revenue.
The proposal lifts expenditure by 90 million euros to 3.45 billion euros and revenue by 25 million euros to approximately 3.1 billion euros. The resulting shortfall is 25% above the previously planned 278 million euros. Total financing requirements would increase from 704 million euros to 784 million euros, while debt repayments are projected at 393 million euros, up from an earlier estimate of 383 million euros.
The government also raised its 2026 GDP growth forecast to 4% from 3.1%, citing stronger activity in tourism, industry and investment.
Spending increases across several areas
The revised programme adds 25 million euros for healthcare, nearly 13 million euros for one-off assistance to pensioners and more than 21 million euros in subsidies for employers of workers with disabilities. Total subsidies for those employers would rise from 24 million euros to approximately 45.8 million euros, almost twice the originally authorised amount.
Public-sector gross wage spending would increase by 13 million euros to 740 million euros. Interest payments on existing borrowing are projected at 197 million euros, compared with the original estimate of 174 million euros. The capital budget, by contrast, would fall from 305 million euros to 303 million euros, despite the government’s stated commitment to infrastructure investment.
Revenue gains and parliamentary approval
The Finance Ministry said improved tax collection creates room for additional socially important spending. Budget revenue from January through September was approximately 2.32 billion euros, up 10.3% year on year. The revised figures show expenditure growing more rapidly than the additional revenue expected.
The supplementary budget remains a proposal and requires parliamentary approval before it can amend the annual budget. Montenegro’s fiscal outlook will increasingly depend on controlling recurring expenditure, maintaining access to financing and ensuring higher nominal revenue leads to sustainable improvements in the budget balance.
