Trends in movement of budget revenues and expenditures in the period January - November are directly affected by the unfavorable epidemiological situation in the country, which resulted in continuous decline in the collection of budget revenues due to the implementation of measures that limited economic activity is aimed at protecting the health of the population. However, even in the conditions of drastic reduction of budget revenues on the one hand, i.e. the need for additional financing due to the implementation of a package of measures to support citizens and the economy on the other hand, the liquidity of the Budget has been preserved and all planned budget obligations have been settled in a timely manner.

Budget revenues in the period January - November 2020 amounted to 1,456.4 mill. € or 31.6% of the estimated GDP (€ 4,607.3 million), which is by 69.5 mill. € or 4.6% less than planned by the Law on Amendments to the Law on Budget.

The decrease in revenue collection is primarily the result of a significant decrease in the realized tourist turnover, so in relation to the plan according to the Supplemental budget, the largest negative deviation was recorded in the categories that depend on the realized turnover, namely: value added tax in the amount of 78.3 mil. € or 14.0% and excise in the amount of 17.8 mil. € or 8.7%. The downward trend in the collection of revenues collected on this basis slowed down significantly during November, bearing in mind that revenues from tourism do not make up a significant part of turnover in November, as is the case in the summer months.

Other revenues recorded a negative deviation in the amount of 15.4 mil. € or 31.9% due to the fact that planned payment based on the dividend of energy companies majority owned by the state has not been made so far.

Considering the fact that the revenue collection plan in October also planned the payment of the debt by the national airline "Montenegro Airlines" in the amount of 9.0 mil. € deviation was also recorded in the category receipts from repayment of loans.

As a result of subsidizing the salaries of employees in industries, especially affected measures to limit the performance of activities within the second and third package of economic measures, but also as a result of collection of part of the tax debt of the national airline in the amount of 10.0 mil. €, taxes and contributions on salaries recorded a cumulative increase, in the amount of 31.5 mil. € or 6.0% compared to the planned, where the income tax is higher by 3.7 mil. € or 3.8%, while contributions are higher by 27.8 mil. € or 6.6%.

As a consequence of the strong growth of economic activity from the previous year, the trend of growth of collection on the basis of profit tax continued, which is higher by 11.5 mill. € or 17.7% compared to the planned.

Compared to the same period last year, budget revenues are lower by 185.7 mill. € or 11.3% due to limited economic activity caused by the COVID-19 virus pandemic and the implementation of measures to mitigate the negative effects on the economy and citizens.

Budget expenditures in the period January - November 2020 amounted to 1,853.7 mill. € or 40.2% of GDP and are lower than planned by 22.2 mill. € or 1.2%.

The most significant deviation from the plan was recorded in the reserve category, which was lower by 19.4 mil. € or 15.3%, as a result of the fact that the previously planned funds on the basis of the legal solution for the financial rehabilitation of "Montenegro Airlines" were not executed in the planned amount.

In the category of social security transfers, there was also a significant deviation from the plan in the amount of 18.2 mil. € or 3.4%, due to lower realization in the category pension and disability insurance in the amount of 12.1 mil. €, as well as social security in the amount of 3.3 mil. €. On the other hand, compared to the previous year, this category of expenditures recorded an increase of 6.7 mil. € or 1.7% primarily as a result of the implementation of the new Law on Pension and Disability Insurance.

In the structure of budget expenditures, current expenditures amounted to 765.7 mill. € and are lower by 2.7 mill. € or 0.4% of the planned, which is a result of the realized savings in the categories of gross salaries and other personal income. On the other hand, primarily as a result of the increase in salaries of employees in Education and Health, but also one-time benefits in the form of incentives and overtime paid to health workers during the pandemic, gross salaries increased by 22.6 mill. € or 5.3% compared to the same period last year.

On the other hand, capital expenditures were realized in the amount of 197.2 mill. €, which is by 17.6 mill. € or 9.8% more than planned, as a result of the continuation of works on the started capital projects, as well as the realization of credit funds on this basis planned within the current budget, while compared to the previous year they are lower by 87.0 mill. € or 30.6%, as a consequence of the reduced intensity of works on the construction of the priority section of the Highway.

In the same period, the capital budget was realized in the total amount of 157.1 mill. € which is for 8.1 mill. € more than planned, while compared to the previous year less by 66.4 mill. €, which is primarily the result of the reduced intensity of works on the section of the Highway due to the pandemic.

Compared to the same period last year, total budget expenditures are higher by 101.0 mill. € or 5.8% due to the implementation of three packages of measures aimed at combating the negative effects of the pandemic and helping citizens and the economy.

In the period January - November 2020, the dynamics of budget revenues and expenditures affected the realization of the budget deficit in the amount of 397.3 mill. € or 8.6% of GDP, which is 47.3 mill. € or 13.5% higher than planned.

Attachment: GDDS 11 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;

* Capital Budget data represent the amounts of planned and executed expenditures by project classification (all categories of expenditures that are in the function of implementation of the project financed by the Capital Budget)