The northern Montenegrin municipality of Pljevlja collected more than €26 million in budget receipts during the first nine months, with forestry concession charges reaching almost four times the amount planned for the entire year.
Total receipts amounted to approximately 79.8% of the municipality’s €32.63 million annual budget, while expenditure stood at slightly more than €17 million.
Forestry concessions generated around €3.29 million, equivalent to approximately 381% of the full-year budget allocation. The increase was attributed to delays in establishing the state-owned forestry company Crna Gora Šume, which enabled existing concession arrangements to remain in place longer than anticipated.
Although the additional income improved the municipality’s financial position, part of the increase is considered temporary and may not provide a permanent source of revenue once the new forestry structure becomes fully operational. Capital expenditure reached approximately €3.55 million, while the municipality and its public enterprises had around €4.4 million in outstanding obligations. No new borrowing was recorded during the reporting period.
The reported €26 million in receipts includes transfers and funds carried forward, meaning the figure does not represent tax revenue alone.
The level of capital spending is particularly relevant given Pljevlja’s investment requirements in roads, water supply, heating, environmental protection and economic diversification. The municipality remains heavily dependent on Montenegro’s coal and electricity industry and faces the need for new investment as the country gradually transitions towards a lower-carbon economy.
The additional forestry income provides greater fiscal room, but its longer-term value will depend on how the funds are allocated. Directing temporary receipts towards infrastructure development or debt reduction could produce lasting benefits, while financing permanent operating expenditure with concession income could expose the municipality to revenue shortfalls once those payments decline. The budget figures therefore combine stronger-than-expected inflows with outstanding obligations and relatively limited capital investment.
