During the past year, there was a continuous growth in budget revenues, reflecting the increase in economic activity in the country as well as the improved living standards of the population, mainly due to the rise in disposable income, according to the Ministry of Finance.
Preliminary data shows that the budget revenues for last year amounted to EUR 2.76 billion, or 37.8% of the estimated gross domestic product (GDP), which is an increase of EUR 188.6 million or 7.3% compared to 2023.
“Excluding one-off revenues, budget revenues for the past year were EUR 333.8 million or 14% higher compared to 2023,” the Ministry said.
The categories of budget revenues that experienced consistent growth throughout the year were predominantly corporate profit tax, personal income tax, value-added tax (VAT), excise duties and others.
Corporate profit tax was realized in the amount of EUR 214 million, which is EUR 62.7 million or 41.4% more than in 2023, and EUR 8.3 million above the revised plan.
Personal income tax amounted to EUR 88.2 million, reflecting a significant increase of EUR 21.7 million or 32.7% compared to 2023.
“Contributions amounted to EUR 584.7 million, which is EUR 9 million higher compared to 2023, while VAT in the past year amounted to EUR 1.22 billion, an increase of EUR 163.3 million or 15.4% compared to 2023,” the statement added.
The capital budget was realized in the amount of EUR 251.17 million, which represents 106% of the capital budget plan for this period, and compared to the same period last year, its realization increased by EUR 62.15 million or 32.9%.
“Significant growth was also recorded in excise tax revenues, which amounted to EUR 368.6 million, EUR 45.5 million more than in 2023. The largest growth was recorded from excise duty on mineral oils and their derivatives, while revenue from excise duties on tobacco and tobacco products surpassed last year’s total collection by October,” the Ministry stated.
The Ministry explained that last year, cigarette sales increased by approximately 94 tons compared to 2023, while sales of smokeless tobacco products grew by over 1.5 million packs, partly as a result of combating irregularities and the gray economy in the tobacco market.
In December alone, budget revenues amounted to EUR 257.3 million, which is EUR 3.5 million higher than in December 2023.
The capital budget in December was realized at EUR 93.91 million, representing 225.9% of the plan, and compared to December 2023, its realization was EUR 33.37 million or 35.5% higher.
“During the past year, the budget deficit was lower than planned and amounted to EUR 230.9 million, or 3.2% of the estimated GDP, which is EUR 4.5 million lower than planned. Additionally, a current expenditure surplus of EUR 49.9 million was achieved, which is EUR 15.5 million higher than the planned surplus of EUR 34.3 million,” the Ministry clarified.
With the achievement of a surplus in current expenditure, the fiscal responsibility criterion defined by the Budget and Fiscal Responsibility Law, or the so-called golden fiscal rule, is met. This rule stipulates that the level of current expenditures and transfers should be lower than current revenues and donations, and that the state should only borrow for the purpose of financing capital projects and repaying debt.
