Budva has collected approximately 57 per cent of its record €79 million annual budget during the first half, before the strongest tourism-revenue quarter. Income from personal-income tax and local surtaxes was around 7–8 per cent higher than a year earlier, while property and property-transfer tax collection also exceeded the comparable 2025 level.
The municipality is considering a positive budget revision as the July-August season increases tourism-linked receipts. Yet the revenue structure remains highly cyclical: property transactions, tourism activity, communal charges and construction-related fees make the municipal budget sensitive to both the summer season and the coastal real-estate market.
Budva has awarded three infrastructure contracts worth more than €30 million. Bemax secured a €7 million road-rehabilitation package covering sections of the Adriatic Highway and the Žrtava fašizma and Kanjoša Macedonovića streets. A consortium of Serbia’s Gemmax Gradnja and Montenegro’s Viamont received an €18 million contract for a new road across the Grđevica river corridor and a separate €5.5 million contract for two prefabricated parking garages.
The awards convert stronger municipal revenue into visible urban investment, but they also increase oversight requirements. Works executed in a congested tourism city must be sequenced around traffic, utilities, seasonal access and drainage constraints. The municipality will need disciplined certification of quantities and variations to prevent the initial €30.5 million envelope from expanding during construction.
Budva has separately allocated approximately €500,000 to support tenants and subsidise housing-loan costs for younger residents. The programme addresses the social effect of a property market whose tourism and foreign-investment demand has pushed rents and purchase prices beyond local wage growth. It is affordable within the present budget, but it treats the affordability symptom rather than expanding permanent housing supply.
