Press realese: Montenegro Budget execution in the period January-October 2019 (GDDS table 10)

Budget revenues in the period January-October of the current year amounted to 1.494,7 mill. € or 31,0% of GDP, which is higher by 2,8 mill. € or 0,2% compared to the plan, while compared to the same period of 2018 it increased by 76,0 mill. € or 5,4%.

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 65,5 mill.€, contributions by 17,9 mill. € and excise by 14,7 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 of inspection controls.

Budget expenditures in the period January-October 2019 amounted to 1.530,1 mill. € or 31,8% of GDP and in relation to the planned they were lower by 148,1 mil. € or 8,8%. In the structure of consumption, Current budgetary consumption were realized at the level of 1.355,7 mil. € and was lower by 55,1 mill.€ or 3,9% 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 174,4 mil. €, which is lower by 93,0 mil. € or 34,8%  of planned, whereby the realization of the funds planned in the part of the Capital Budget is largely determined by the intensity of works performed on the highway priority section. Having in mind the comparative period from the previous year, total amount of budget expenditures is higher by 58,4 mil. € or 4,0% of the GDP due to the increased realization in the part of Current budgetary consumption which was recorded in Transfers to institutions, individuals, NGO and Public Sector, Gross Salaries and Contributions of Employer and Social Security Transfers.

According to revenue and expenditure trends, in the period January-October of the current year, the budget deficit has been realized in the amount of 35,4 mil. € or 0,7% of the GDP, which is 150,9 mil. € or 81,0% less than planned and comparing the comparative period from the previous year was lower by 17,6 mil. € or 33,2%.

In the same period, a surplus of Current budgetary consumption was recorded in the amount of 139,1 mill.€ or 2,9% of GDP, which indicate that Current expenditures are financed from revenues, in other words, the state finances all its current expenditures from current revenues.

Attachment: GDDS 10_monthly data-final.xlsx