Montenegro recorded a €124.2 million budget deficit during the first nine months of 2026, an increase of 46.6% compared with the same period of the previous year, as expenditure growth exceeded the rise in government revenue.
Total public spending increased 11.7% to €2.44 billion, while revenue grew 10.3% to €2.32 billion, according to Finance Ministry figures. The deficit was approximately €39.5 million higher than the previous year’s €84.7 million, but remained €56.9 million below the government’s planned level.
Capital expenditure recorded one of the strongest increases, rising 48.4% to €278.5 million, including €209.3 million allocated through the capital budget. Other major expenditure categories included €851.8 million in social protection transfers, €534.3 million in gross wages and employer contributions, and €128 million in interest payments, up 14.8%.
VAT remained the largest source of budget revenue, generating €1.105 billion, an annual increase of 7.3%. Corporate income tax receipts reached €230.8 million, while excise revenue amounted to €317.2 million. In September, the budget recorded a monthly surplus of €22 million, supported by revenue growth of 19.5%.
Despite the overall deficit, Montenegro maintained a current-spending surplus of €154.3 million during the nine-month period, meaning revenue exceeded expenditure when capital investment was excluded. The overall budget deficit represented 1.4% of estimated GDP. Rising capital expenditure and interest payments were among the main developments shaping the government’s fiscal position.
