Montenegro, Budget cash deficit amounted to EUR 249.1 million last year, News
Last year, the budget cash deficit amounted to EUR 249.1 million, or 4.4 percent of the estimated gross domestic product (GDP), according to data from the Ministry of Finance.
Budget revenues last year amounted to two billion EUR or 35.2 percent of the estimated GDP.
“Compared to the planned, realized revenues are 78.1 million or four percent higher, while compared to the comparative period of 2021 they are 97.7 million or 5.1 percent higher,” the published data on the execution of the budget for the period January showed -December last year.
Revenues from value added tax (VAT) last year recorded a record growth compared to 2021, in the amount of EUR 216.1 million or 31.2 percent, primarily as a result of growth in private consumption, imports and inflation, a successful summer tourist season and the effects of electronic fiscalization of tax register cash registers.
“Proceeding from the above, VAT revenues were the main generator of growth in total revenues last year. A significant growth in collection was also recorded in revenues from taxes on international trade and transactions, which grew at a rate of 42.2 percent as a result of the growth in realized imports, as well as in revenues from corporate income tax, which compared to 2021. Recorded a growth of 20.7 percent,” the document adds.
Growth was also recorded in fees, which were charged 42.4 percent more compared to 2021.
“On the other hand, lower revenue collection compared to 2021 was achieved in taxes and salary contributions, due to the introduction of the non-taxable part of the salary and the abolition of health insurance contributions,” explained the Ministry.
In addition, the lower collection of income tax was influenced by the adoption of amendments to the Law on Financing of Local Self-Government, which increased the percentage of income from personal income tax transferred to local self-governments, through a simultaneous reduction of income that until then belonged to the central government on this basis the budget.
Compared to 2021, the revenues from excise duties are EUR 2.8 million or 1.1 percent lower.
“The decrease in income, due to the application of the Decision on reducing the amount of excise tax on the sale of unleaded gasoline and gas oils, was compensated to the greatest extent by the increase in income from excise taxes on tobacco and tobacco products, which, compared to 2021, recorded an increase of EUR 31.6 million or 52.3 percent, as a result of suppressing activities on the illegal market of tobacco and tobacco products,” the document states.
Last year, budget expenditures amounted to EUR 2.26 billion or 39.6 percent of the estimated GDP and compared to the planned, they are 126.1 million or 5.3 percent lower. In relation to the comparative period of 2021, expenditures are EUR 247.2 million higher, or 12.3 percent.
“In the structure of total spending, expenditures within the current budget, state funds and reserves make up 91 percent, while the capital budget makes up nine percent,” the document states.
When it comes to the capital budget, the realization is at the level of EUR 203.1 million, which represents an execution of 84.4 percent. The most significant allocation within the capital budget refers to the realized payments for the needs of the project of the priority section of the highway in the amount of EUR 68 million, that is, which was realized in the full planned amount.
On the other hand, other capital projects were realized in the amount of EUR 135 million, which is at the level of 78 percent of the plan. According to the data of the Ministry, in December last year, budget revenues amounted to EUR 218.7 million, which is 22.6 million or 11.5 percent more than the plan. Compared to the same month in 2021, budget revenues are EUR 29.7 million or 12 percent lower.
“The main reason for the deviation of income in December relates to the amount of donations that were made at a higher level in the same month of 2021, in the amount of EUR 12.9 million or 69.7 percent,” the Ministry stated.
In December, budget expenditures amounted to EUR 370.7 million and were higher than the plan by EUR 59.2 million, or 19 percent.
“Higher execution within the current and budget of state funds is conditioned by higher execution of expenditures for services, expenditures for current maintenance, subsidies, as well as transfers to institutions, while within the framework of the capital budget, the execution is at a higher level than the plan by 11.9 million EUR, i.e. 34 5 percent,” the document states.
Taking into account the realized revenues and realized expenditures, in December the budgetary deficit was 152 million EUR, or 2.7 percent of GDP, which is 36.5 million more than planned.
Sign up for business news updates & special reports.
- February 16, 2023 Serbian Belkalhan calcite & graphite mining developer invites JV partners for joint critical raw materials exploitation
- April 2, 2023 Montenegro’s joining to the Single Euro Payments Area, a final step towards last phase of integration into the EU
- April 2, 2023 Montenegro, Planes will fly from Podgorica to Kiev again
- April 2, 2023 Montenegro, New routes from Tivat and Podgorica airports this season