Montenegro's Ministry of Finance Reports €2.75 Billion in Budget Revenues for Last Year
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Loading... - Dacre Reid
- 01 Apr 2025
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The Montenegrin Ministry of Finance has announced that the state earned €2.75 billion in budget revenues last year, marking an increase of €188.6 million, or 7.3%, compared to 2023. This figure represents 36.9% of the country's gross domestic product (GDP), reflecting a robust performance across various revenue categories.
Significant positive deviations were recorded in all main categories of budget revenues, including corporate profit tax, personal income tax, value-added tax (VAT), and excise duties. Excluding one-off revenues, the budget revenues were €333.8 million, or 14%, higher than in 2023. For instance, income tax revenues reached €214 million, an increase of €62.7 million, or 41.4%, compared to the previous year. Personal income tax collected amounted to €88.2 million, reflecting a rise of €21.7 million, or 32.7%.
VAT revenues totaled €1.22 billion, which is €163.3 million, or 15.4%, higher than in 2023. Additionally, revenues from excise duties reached €368.6 million, an increase of €45.5 million, or 14.1%. The largest contributions to excise duty growth came from mineral oils and tobacco products, with notable increases in cigarette turnover and smokeless tobacco products attributed to efforts to combat irregularities in the market.
On the expenditure side, total budget expenditures for the year were €2.98 billion, representing 40% of the estimated GDP, reflecting an increase of €430.5 million, or 16.8%, compared to the previous year. The largest increases were seen in allocations for pension and disability insurance, public health institutions, and gross wages due to new sectoral collective agreements.
The budget deficit for the year amounted to €230.9 million, or 3.1% of estimated GDP, which is €4.5 million lower than planned. A current expenditure surplus of €49.9 million was achieved, exceeding the planned surplus by €34.3 million, indicating adherence to fiscal responsibility criteria.
At the end of the year, Montenegro's total public debt stood at €4.57 billion, or 61.32% of GDP. After accounting for the Ministry of Finance's deposits, including gold reserves, the net public debt was €4.18 billion, or 56.15% of GDP.
The Ministry of Finance attributes the continuous growth in budget revenues to dynamic consumption and investment growth, alongside a decline in the shadow economy. The department emphasizes its commitment to transparent and responsible management of public finances, which has contributed to the positive trends observed in the early months of this year.
