Montenegro’s State Treasury reported a revenue of €75.4 million for the first half of 2024, which is 6.1% above the planned figure and €72.7 million more than the same period last year, according to the Ministry of Finance‘s budget execution report.
- Excluding one-time revenues, the budget revenues for the first half of 2024 increased by €193.5 million, or 17.6%, compared to the same period in 2023. The total budget revenues amounted to €1,309.2 million, representing 18.6% of the projected GDP (€7,034.0 million), which is a 5.9% increase from the previous year.
Corporate income tax revenues rose by €50.0 million, or 35.4%, compared to the plan and were over 45% higher than the previous year.
- Personal income tax revenues increased by 22% over the planned amount and saw a 48.4% rise compared to 2023.
Social contributions grew by 4.8% over the planned amount and 10.2% compared to the same period last year.
- Excise duties collected were €4 million above the plan and €23.5 million higher than the previous year. VAT revenues totaled €60.4 million, representing a 12.7% increase from the previous year.
Enhanced efforts by the Tax Administration in the past six months led to a €7.4 million or 15.8% increase in VAT refunds compared to the previous year, positively affecting the business environment and reducing economic barriers.
Other revenue categories also saw a 12.9% increase over the plan, amounting to €4.6 million.
- However, June 2024 budget revenues amounted to €222.6 million, which is €29.9 million or 11.8% less than June 2023. This decrease is due to one-time payments made in June 2023 from hedging arrangements totaling €59.9 million. Compared to the June plan, revenues showed a slight increase of €0.6 million or 0.3%.
Budget expenditures for January to June totaled €1,278.7 million, or 18.2% of the projected GDP, and were €108.5 million or 7.8% below the planned amount.
- Compared to the previous year, expenditures increased by 19.3%, primarily due to higher pension and disability benefits, increased minimum pensions, transfers to institutions, and higher public sector salaries resulting from collective agreements.
Capital expenditures reached €59.9 million, or 82.4% of the planned capital budget, and 63.3% of the same period last year.
- In June, current expenditures totaled €84.41 million, which is €2.04 million or 2.4% below the plan and €0.38 million or 0.5% below June 2023. Despite a projected June deficit of €12.1 million, a budget surplus of €0.5 million was achieved, exceeding the planned deficit by €183.9 million.
In summary, the semi-annual budget performance shows that careful planning, efficient spending, and responsible financial management can improve economic stability, increase revenue, reduce expenditure, achieve higher capital budget execution, and ensure timely and complete fulfillment of budget obligations.
