Ministry of Finance Press Release on the occasion of source revenues generation of the Budget of Montenegro and state – owned funds budget, in the period from 1st January – 30 the June 2010

In June 2010, source revenues of the Budget of Montenegro and state – owned funds were generated in the amount of EUR 112.97 million, which is by 9.72% higher than planned for this month. The greater revenues generation was the result of lodged EUR 13 million of budget arrears from last year on the basis of contributions for pension insurance, health insurance and unemployment insurance. The source revenues of the Budget of Montenegro and state – owned funds budget for the period from January - June 2010, amounted to EUR 510.98 million, being lower than planned by 2.52%. If we exclude EUR 13 million of lodged contributions which relate to last year, revenue deviation from the plan is 5% for six months. The structure of source revenues of the Budget of Montenegro as state – owned funds, in this period is as follows: collection of tax revenues was generated in the amount of EUR 472.08 million, out of which direct taxes were collected in the amount of EUR 219.85 million, indirect taxes were collected in the amount of EUR 252.23 million. Tax based revenues amounted to EUR 305.27 million, being by 9.05% lower than planned. VAT collection was recorded in the amount of EUR 168.66 million. Contributions based revenues amount to EUR 166.81 million, being by 16.13% higher than planned for six months of 2010. Collection of international trade and transactions taxes was generated in the amount of EUR 23.09 million, which is by 8.88% higher than planned. Collection of non-tax revenue was generated in the amount of EUR 38.90 million (being by 13.35% less than planned ones), out of which duty based revenues amounted to EUR 10.52 million, fee based revenues amounted to EUR 12.23 million, other income was generated in the amount of EUR 14.56 million, and receipts from the repayment of loans amounted to EUR 60 million. Compared with the generation for the first six months of last year, the source revenues of the Budget and state - owned funds are by 1.87% above last year's generation. We are emphasizing that we realized EUR 22 million of revenues from the repayment of loans by Prva Bank. If we exempt the revenue obtained from the Prva Bank, being were temporary revenues and EUR13 million of reconciled liabilities relating to last year, the source revenues of the Budget would be at the level of 3.8% above the generated revenues in the first six moths of the last year.