The movement of budget revenues and expenditures is still significantly determined by the pandemic of the virus COVID-19 and the implementation of public health protection measures, which limited economic activity and resulted in a reduction of budget revenues. On the other hand, budget expenditures are determined by the need to support the health system as well as the continued implementation of socio-economic measures to help citizens and the economy planned by the fourth package of measures.

Compared to the first quarter of the previous year, which was characterized by strong growth of economic activity as a continuation of positive trends in macroeconomic indicators in 2019, a decline in budget revenues is expected in this period, as a result of economic activity in a pandemic.

Budget revenues in January 2021 amounted to 88.6 mill. € or 1.9% of estimated GDP (€ 4,609.1 mill.), which is at the level originally planned. Compared to January 2020, revenues are lower by 5.7 mill. € or 6.0% due to limited economic activity as a result of the implementation of measures to combat the negative effects of the COVID-19 virus pandemic on the economy and citizens.

The largest decrease compared to the same month last year was recorded in value added tax in the amount of 3.7 mill. € or 7.7%, and excise in the amount of 1.7 mill. € or 9.5%. Reduced collection of these categories of revenues was recorded as a result of the decrease in turnover compared to the comparable period of the previous year, due to the effects of the COVID-19 virus pandemic declared in March 2020, on economic flows in the country. Compared to the planned, the collection of revenues based on VAT was realized at the level of the plan for January, while the collection of revenues from excises is higher than planned by 1.5 mill. € or 10.1%.

The highest increase of € 0.7 mill. or 29.5% compared to the same month last year was recorded in the category of fees, as a result of the collection of revenues generated by the implementation of the Economic Citizenship Program. Also, the collection of this category of income was realized above the planned by 1.0 mill. € or 51.4%.

Bearing in mind that the Law on the Budget for 2021 was not adopted by December 31 of the previous year, pursuant to Article 37 of the Law on Budget and Fiscal Responsibility, temporary financing was granted, according to which spending units are granted monthly funds up to 1/12 (one twelfth) actual expenditures in the previous fiscal year, in accordance with which the expenditure plan for January was determined.

Budget expenditures in January 2021 amounted to 127.4 mill. € or 2.8% of GDP and compared to the planned they are lower by 59.9 mill. € or 32.0%, while compared to January 2020 they are lower by 1.2 mill. € or 0.9%.

The recorded discrepancy in expenditures is a consequence of the fact that the plan was determined from the assumption of creating the necessary fiscal reserve for financing measures and activities in conditions of uncertainty during the pandemic, as opposed to the usually lower realization of expenditures in January compared to average monthly spending.

In the structure of budget expenditures, current expenditures were realized at the level of 51.2 mill. € and are lower by 18.9 mill. € or 27.0% compared to the planned. The lower realization compared to the planned ones is determined by the lower realization of all categories of current expenditures. Compared to January 2020, this category of expenditures is lower by 2.5 mill. € or 4.6%.

In addition to the above, capital expenditures were realized in the amount of € 11.6 mill., which is less by € 3.7 mill. or 24.0% than planned, while compared to the realization in January 2020, they are higher by 7, 5 mill. €.

In January 2021, the dynamics of budget revenues and expenditures affected the realization of the budget deficit in the amount of 38.8 mill. € or 0.8% of GDP, which is 60.0 mill. € or 60.7% less than planned.

Attachment: GDDS 1 monthly data.xlsx

* The data in the GDDS table represents an overview of income and expenses by economic classification in one month, compared to the plan and the same period of the previous year.