Montenegro’s government has approved a proposed 2026 budget revision that would raise the deficit by 70 million euros to 348 million euros and planned new borrowing to 568 million euros. The proposal increases expenditure more than expected revenue and still requires parliamentary approval.
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Montenegro recorded a budget deficit of 124.2 million euros, about 1.4% of estimated GDP, in January-September 2026 as expenditure grew faster than revenue. The shortfall was 56.9 million euros below the government’s nine-month plan.
Montenegro spent 278.5 million euros on capital expenditure in the first nine months of 2026, reaching 106.6% of the period’s plan. The faster execution expands the near-term market for contractors and suppliers.
Montenegro collected 2.3185 billion euros in budget revenue during January-September 2026, up 10.3% year on year and 46.5 million euros above plan. The surplus provided a fiscal cushion as expenditure also increased.
Montenegro’s Finance Ministry calculated that the proposed Euro Model would reduce annual payroll-related taxes to about 1,000 euros for an employer paying a 1,400-euro net monthly salary, from roughly 4,155 euros under current rules. The government has not published an independently reviewed estimate of the reform’s full fiscal impact.
The Ministry of Finance has submitted to the Government of Montenegro the 2026 Capital Projects Proposal, a plan aimed at driving strategic development and improving the…
