Press realese: Montenegro Budget execution in the period January-August 2019 (GDDS table 08)

Budget revenues in the period January-August of the current year amounted to 1.172,2 mill. € or 24,4% of GDP, which is higher by 20,1 mill. € or 1,7% compared to the plan, while compared to the same period of 2018 it increased by 86,5 mill. € or 8,0%.

All the most important categories of tax revenues recorded growth compared to the same period of the previous year, where the collection of VAT was  higher by 42,9 mill.€, contributions by 17,6 mill. € and excise by 10,3 mill.€. The positive deviation of tax revenues is a result of positive macroeconomic movements, collection of tax arrears according to the Law on tax debt reprogramming, conducting of redefined excise policy as well as strengthening fiscal discipline.

Budget expenditures in the period January-August 2019 amounted to 1.227,3 mill. € or 25,6% of GDP and in relation to the planned they were lower by 131,2 mil. € or 9,7%. In the structure of consumption, Current budgetary consumption were realized at the level of 1.081,4 mil. € and was lower by 63,2 mill.€ or 5,5% than planned as a result of a lower realisation of almost all categories of expenses within Current budget expenditures. Besides this, the Capital Budget was realized in the amount 145,9 mil. €, which is lower by 68,0 mil. € or 31,8%  of planned due to slowdown in dynamic of the realisation of Highway project, that is, withdrawal of funds on this basis.

Having in mind the comparative period from the previous year, total amount of budget expenditures is higher by 88,5 mil. €, due to the increase in appropriations in the part of realization of capital projects, while in the part of Current budgetary consumption increased realization was recorded in Transfers to institutions, individuals, NGO and Public Sector, Gross Salaries and Contributions of Employer and Social Security Transfers.

In the period January-August of the current year, the budget deficit has been realized in the amount of 55,1 mil. € or 1,1% of the GDP, which is 151,3 mil. € less than planned and comparing the comparative period from the previous year was lower by 2,0 mil. € or 3,8% of GDP.

In August, a surplus of Current budget expenditures was recorded in the amount of 90,8 mill. € or 1,9% of GDP, which indicate that Current expenditures are financed from revenues thus fulfilling one of the basic fiscal rules when in comes to planning and implementing the Budget.

Attachment: GDDS 08_montly data-f-final.xlsx