Montenegro recorded a budget deficit of 88.3 million euros in the first nine months of 2025, equivalent to 1.1% of the estimated gross domestic product (GDP), according to data from the Ministry of Finance (MF).
In September alone, the budget deficit amounted to 15 million euros, or 0.2% of GDP. Over the same nine-month period, the current spending balance recorded a surplus of 99.8 million euros, including a surplus of 17.9 million in September, the Ministry stated in its Budget Execution Report for September.
The Ministry reported that total budget revenues reached almost 2.1 billion euros, or 26.5% of GDP, representing a 1.2% increase compared to the same period last year.
Revenue collection reached 99% of the plan, which, according to the Ministry, confirms fiscal responsibility, stability, and efficient management of public finances. Almost all major categories of budget revenues showed strong and steady growth compared to the previous year. Growth in indirect taxes fully compensated for the decline in pension and disability insurance (PIO) contributions, reflecting the credibility of implemented fiscal measures and the stability of the system.
Corporate income tax revenue amounted to 222.5 million euros—8.9% higher than in the previous year and 6.6% above plan—already exceeding the annual target by 2.7 million euros. Personal income tax revenue reached 77.9 million euros, up 31% year-on-year and 4.8% above plan.
Value-added tax (VAT) revenue totaled 1.03 billion euros, an increase of 14.3% compared to the same period last year and 1.9% above plan. The strong VAT collection was accompanied by higher refunds, which increased by 10.4 million euros, or 14.4%.
Excise tax revenue amounted to 298.7 million euros, up 7.8% from the same period last year but 1.3% below plan. The largest growth was recorded in excises on mineral fuels and derivatives (up 5.8%) and tobacco products (up 11.3%).
Other revenues totaled 39.8 million euros, 18.1% higher than planned but 46.5% lower than a year earlier, mainly due to the absence of one-off revenues recorded last year. Contributions amounted to 290.7 million euros—32.4% less than in the same period of 2024 and 7.1% below plan. However, the Ministry noted that the gap in PIO contribution collection has been narrowing in the second half of the year, indicating improving trends.
In September alone, budget revenues reached 261.6 million euros, 5.5% higher than a year earlier and 3.2% above plan.
Total expenditures for the first nine months amounted to nearly 2.19 billion euros, or 27.6% of GDP. Current expenditures stood at 837.2 million euros (91.9% of plan), with lower realization across most categories, mainly “other expenditures.” Wages and employer contributions totaled 511.1 million euros, 2.5% below plan.
Social protection transfers amounted to 823.9 million euros (99.3% of plan), up 11.3% year-on-year. Transfers to institutions, individuals, NGOs, and the public sector totaled 309.3 million euros, 11.8% below plan.
Capital expenditures reached 188.2 million euros (95.3% of plan), marking a 37.2% increase compared to last year. The largest portion—110.1 million euros—was spent through the capital budget, with the remainder distributed across current and fund budgets.
In September, total expenditures were 276.6 million euros, 8.8% higher than in the same month of 2024. The deviation from the plan was mainly due to lower spending on subsidies (1.7 million euros, 75.3% below plan) and “other expenditures” (3.8 million euros, 55% below plan), mostly due to reduced spending on contract work and IT services.
Higher spending than planned—by 8.8 million euros, or 60.6%—was recorded for interest payments, primarily to non-residents, reflecting the adjusted payment schedule of the state’s obligations.
Capital expenditures in September amounted to 32.9 million euros, 23.7% higher than in the same month of the previous year.
