In the first ten months of 2024, Montenegro’s budget saw significant growth, with all major revenue categories exceeding both projections and performance from the previous year.
Total revenue for the period reached €2.317.7 million, which is €193.9 million (9.1%) higher compared to the same period in 2023, and €33.9 million (1.5%) higher than the revised budget plan. Excluding one-off revenues, budget revenues for January to October 2024 were up by €329.5 million (16.8%) compared to 2023, according to the Ministry of Finance.
The capital budget, which includes capital expenditure and certain service-related costs, stood at €133.76 million, representing 86.9% of the plan for this period. This is an increase of €19.49 million (17.1%) compared to the previous year.
Key revenue categories saw notable growth:
- Corporate tax: The corporate tax amounted to €205.9 million, up by €62.6 million (43.7%) from the same period in 2023 and €2.9 million (1.4%) above the revised plan.
- Personal income tax: Revenues from personal income tax reached €70 million, a significant increase of €19.9 million (39.6%) compared to 2023, and €3.2 million (4.8%) higher than planned.
- Contributions: Social security contributions amounted to €484.9 million, an increase of €45.6 million (10.4%) compared to 2023 and €8.5 million (1.8%) above the revised plan.
- Value added tax (VAT): VAT revenues reached €1.020.5 million, an increase of €127.5 million (14.3%) compared to 2023, and €16.2 million (1.6%) above the revised budget plan.
- Excise revenues: Excise revenues totaled €309.9 million, a rise of €39.5 million (14.6%) compared to the same period in 2023, and €4.1 million (1.3%) above the revised budget.
In October, the budget saw revenues totaling €240.4 million, which is €20.4 million (9.3%) more than the same month last year and nearly €5 million above the revised plan.
Overall, the budget surplus for the period reached €75.1 million, or 1.0% of the projected GDP, which marks a significant improvement compared to the projected budget deficit of €105.3 million, resulting in a €180.5 million better budget balance than planned.
Given the positive trends for the first ten months, favorable forecasts for November and December, and the overall improvement in revenue performance, Montenegro is expected to close the year with a better overall budget balance than initially projected. The country remains committed to adhering to the golden rule of public finance—achieving a surplus in current spending and financing all current obligations through current revenues.
