News"Montenegro's fiscal performance: January surplus reflects revenue strength and budget management

“Montenegro’s fiscal performance: January surplus reflects revenue strength and budget management

Supported byOwner's Engineer banner

In January, the Ministry of Finance reported a budget surplus of 16.3 million EUR, equivalent to 0.2% of the estimated Gross Domestic Product (GDP). The data reflects the realization of revenues and expenditures in the budget.

According to the budget execution report for January, the preliminary budget revenues for the period reached 153.5 million EUR, exceeding the planned amount by 4.7 million EUR (3.2%) or 2.2% of the estimated GDP. Excluding one-time revenues, the figures showed a notable increase of 27.8 million EUR (22.2%) compared to the same period last year. However, when considering one-time revenues, there was a decrease of 14.2 million EUR (8.4%).

Supported by

The report highlighted that the prior year saw the collection of one-time revenues, around 42 million EUR in January, attributable to the implementation of the ‘Economic Citizenship’ project and fees related to the allocation of radio frequencies in 5G pioneer bands for public mobile communication networks.

Value-added tax (VAT) revenues for January amounted to 91.6 million EUR, showcasing a year-on-year increase of 11.8 million EUR (14.7%). In comparison to the planned level, VAT revenues exceeded expectations by 1.2 million EUR (1.3%).

Supported byElevatePR Digital

The Ministry attributed the growth in VAT revenues to increased consumption. Excise tax revenues, meeting the plan at 22.6 million EUR, recorded a notable increase of 5.1 million EUR (28.9%) compared to the previous year, driven by heightened consumption, an accelerated excise calendar, and the impact of a previous decision on reducing excise tax on certain fuels.

Contributions collected in January amounted to 13.5 million EUR, falling short of the planned amount by 2.8 million EUR (17.1%). This was also 2.1 million EUR (13.2%) less than the same month last year, with the Ministry explaining the deviation as a result of the accounting principle, where collections from the Tax Administration are booked as revenue the following day.

Other income, lower by 24.2 million EUR (70%) compared to the previous year, was primarily affected by the transfer of funds for the ‘Economic Citizenship’ project. The Ministry highlighted that this category recorded an increase compared to the plan, driven by profits paid by the Central Bank of Montenegro (CBCG) and refunds related to the salary subsidy program to mitigate the effects of the COVID-19 epidemic.

Budget expenditures for January totaled 137 million EUR or 1.9% of the estimated GDP, representing a 25.8% reduction compared to the planned amount. Despite this reduction, expenditures were higher by 22.1 million EUR (19.3%) compared to January last year. Current expenditures for the month amounted to 61.4 million EUR, falling short of the planned amount by 30.1%. However, in comparison to January last year, execution was higher by 15.2%.

The Ministry anticipates that expenditures in certain categories will see a faster spending pace in the coming period. The capital budget was realized at 2.45 million EUR, surpassing the plan by 0.6 million EUR.

Supported byspot_img

Related posts

Supported byspot_img
Supported byspot_img
Supported byInvesting Montenegro logo
Supported byMonte Business logo
error: Content is protected !!