Report on execution of the budget of Montenegro for January and February 2022: Deficit lower than planned by 55%

The trend of good collection of revenues from 2021 continued in 2022, and almost all categories of expenditures were realized in the amount lower than planned. According to the above, the budget deficit for January and February this year is lower than planned by 55.1% (66.8 mill. €) and amounted to 54.4 mill. € or 1.0% of estimated GDP (5,306.4 mill. €). The deficit for that period is lower by 41.5% (38.6 mill. €) compared to the same two months in 2021.

Budget revenues in the period January - February 2022 amounted to 232 mill. € or 4.4% of estimated GDP and are higher by 37.7 mill. € or 19.4% compared to the comparable period in 2021, while compared to the planned they are higher by 15.7 mill. € or 7.3%. Budget revenues for these two months are higher even than the revenues realized in the comparable period in 2020, i.e. before the outbreak of the coronavirus pandemic, by 17.8 mill. € or 8.3%.

The highest growth compared to the plan and the previous year was recorded in revenues from VAT in the amount of 15.4 mill. € or 17.3%, i.e. 24.4 mill. € or 30.4%, as well as in the case of excise revenues in the amount of 3.2 mill. € or 9.6%, or 7.6 mill. € or 25.9%. VAT revenues for January and February amounted to 104.4 mill. €, and from excise 37.2 mill. €.

The categories of fees recorded a significant increase compared to the comparable period in 2021 in the amount of 9.6 mill. €, primarily as a result of collection on the basis of "digital dividend", i.e. the fee paid for the purchase of radio frequency spectrum in the amount of about 7 mill. €, but also payments based on the program "Economic Citizenship". Compared to the plan, this category of income is higher by 2.3 mill. € or 18%

On the other hand, the category of contributions was realized at a slightly lower level than planned by 3.6 mill. € or 7.2%, and in the forthcoming period better collection is expected due to the fact that the increase in the minimum wage has increased the basis for calculating contributions for compulsory social insurance. In accordance with the above, since February, there has been an increase in the contributions for pension and disability insurance by 6% compared to the same month in 2021.

Budget revenues in February 2022 amounted to 124.2 mill. €, which is by 17.6% (18.6 mill. €) more compared to the same month last year, while compared to the plan it is higher by 10.5% (11.8 mill. €).

The realized collection in February is also above February 2020 by 4.3 mill. € or 3.6%.

Budget expenditures for the period January and February 2022 amounted to 286.4 mill. € or 5.4% of estimated GDP and are lower than planned by 51.1 mill. € or 15.1%, and in the total amount at the level of last year 's consumption, observing the same period 2021.

In the structure of total spending, capital expenditures were realized in the total amount of 27.7 mill. € and are higher by 46.8% (8.8 mill. €) compared to the same period last year. They are lower by 7.4 mill. € than planned. € in accordance with the dynamics of execution of works on capital projects. The most significant part of the realized payments refers to the highway project (17.4 mill. €).

Expenditures in February 2022 amounted to 150.8 mill. € and are lower compared to the plan, as well as compared to February 2021 by 8.8 mill. €, i.e. 9 mill. €. The budget deficit in February amounted to 26.7 mill. € and is lower than planned by 20.6 mill. €, or 43.6%.

Attachment: GDDS 2 montly 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.