The Ministry of Finance (MF) addressed recent media reports suggesting deviations in budget revenue for May 2025 compared to the plan, clarifying that total budget revenues for that month were higher than last year’s and that the observed fluctuations are temporary, expected, and technically driven—not indicative of any fiscal instability.
From January to May 2025, total budget revenues amounted to €1,097 million, representing 13.8% of GDP and exceeding the previous year’s figures by €8.5 million (0.8%). Revenues reached 98% of the planned level, reflecting a temporary deviation of €22.2 million due to the accounting cut-off on May 28, with some revenues recorded in June instead. This timing is a normal occurrence in public finance and aligns with fiscal and macroeconomic projections.
Recent upgrades to the electronic payment system caused temporary delays in some revenue reporting, but key tax categories showed growth compared to both the previous year and plan. Indirect taxes (VAT and excise) increased by €62.4 million, compensating for fluctuations in contribution revenues. Personal income tax rose by €6.7 million, and corporate income tax increased by €14.1 million, confirming the system’s stability.
Fiscal stability remains solid, with the budget deficit for the first five months of 2025 at 0.6% of GDP—€61.2 million below the planned level. A current expenditure surplus of €8.4 million further supports public finance sustainability.
The full impact of the peak tourist season, which significantly boosts budget revenues, is yet to be reflected since most payments for May occur by mid-June. Revenue from donations reached 87.2% of the plan, with timing differences mainly related to Reform Agenda funds reserved for Montenegro and expected in coming months.
Overall, available data and trends clearly show that budget revenues align with plans, and current deviations are short-term, technical in nature, and do not threaten fiscal stability. The Ministry continues to monitor fiscal risks closely, working with international institutions and domestic bodies to maintain financial stability and sustainability.
