Montenegro’s public finances demonstrated resilience in 2025, bolstered by increasing tax revenues and robust economic growth. Total government revenues reached €2.873 billion, which accounts for 35.4% of the country’s GDP, marking a 4.3% increase compared to the previous year.
The growth in tax revenues was particularly notable across several categories. Personal income tax revenues surged by 27.1%, while value-added tax (VAT) revenues rose by 14.8%. Additionally, excise duties increased by 9.4%, and corporate income tax revenues saw a rise of 9.1%.
On the expenditure side, government spending totaled €3.1948 billion, representing 39.3% of GDP. This resulted in a fiscal deficit of €321.6 million, equivalent to 3.96% of GDP. Despite this deficit, current budget operations achieved a slight surplus of €9.54 million, indicating that the deficit was primarily linked to investment expenditures rather than operational costs.
Maintaining fiscal stability is essential for Montenegro as it seeks to finance ongoing infrastructure projects, promote tourism development, and modernize its energy sector.
