Report on the execution of the budget of Montenegro for January - April 2022

Published on: May 30, 2022 11:08 AM Author: Ministarstvo finansija


Budget revenues from the beginning of January up until the end of April 2022 amounted to 598.6 mil. € or 11.3% of estimated GDP and are higher by 106.1 mil. € or 21.5% compared to the same period in 2021, while compared to the planned they are higher by as much as 70.6 mil. € or 13.4%. Budget revenues for four months of this yearare higher by 62.2 million. € or 11.6%. compared to the same period in 2019.

Revenue growth result is due in part to increased disposable income, as well as significant imports and increased item prices, which has led to better collection of VAT, excise and international trade revenues.

Revenues from VAT and excises continue to record a significant increase compared to the planned by 52.9 million. € or 27.5%, or 10.1 mil. € or 15.4%. Compared to the four months of 2021, VAT revenues are higher by 73.1 mil. € or 42.5%, while revenues from excises increased by 18.0 mil. € or 31.1%.

In addition to the above, the corporate income tax category also recorded a realization significantly higher than planned (€ 15.5 million or 28.4%), which is in addition to good results from the business year 2021, an indicator of a high degree of tax discipline. Compared to the previous year, revenues on this basis are higher by 21.4 million. € or 43.9%.

On the other hand, the category of contributions were realized at a slightly lower level than planned by 6.9 million. € or 5.4%, as compared to the previous year by 22.4 mil. € or 15.6%, as a result of the abolition of health insurance contributions. However, as expected, the contributions for pension and disability insurance are higher compared to the comparable period in 2021 by 9.4%, primarily as a result of the fact that the increase in the minimum wage increased the basis for calculation. Also, contributions for PDI in April recorded a significant increase compared to the same month last year by 27.7%.

Budget revenues in April 2022 amounted up to 182.0 mil. €, which is by 26.3% (€ 37.9 million) more compared to the same month from previus year, while compared to the plan it is higher by 12.4% (€ 20.1 million).

Budget expenditures in the period January - April 2022 amounted to 634.9 mil. € or 12% of estimated GDP and are lower than planned by 50 mil. € or 7.3%, and are at the level of executions compared to the same period in 2021.

In the structure of total spending, expenditures within the Current Budget, the budget of state funds and Reserves amount to 92%, while the capital budget accounts for 8%. Lower execution in the specified period predominantly refers to payments based on pension and disability insurance rights with the Pension and Disability Insurance Fund (which is realized in accordance with the number of executors and which is expected to grow and reach the plan in the coming period due to pension adjustment ), Transfers to institutions, individuals, non-governmental and public sector, as well as Current budget reserves.

When it comes to the Capital Budget, the realization is at the level of € 47.9 mil. and the execution is lower than planned by approximately € 20 mil. or 23%. The most significant allocation within the Capital Budget refers to the realized payments for the needs of the highway project in the amount of € 21.5 mil. which is € 13.1 mil. or 38% lower execution than planned.

Budget expenditures in April 2022 amounted to € 196.32 mil. and were higher than planned by € 14.7 mil. or 8.1%, as well as compared to April 2021 by € 31.9 mil. or 19.4%, which was generated greater execution in Transfers to institutions, individuals, non-governmental and public sector (predominantly within the health care transfer to the Health Insurance Fund, as an education transfer), as well as interest.

Accordingly, taking into account the generated revenues and payments that were realised, in April the budget deficit was € 14.3 mil. or 0.3% of GDP, which is € 5.4 mil. less than the planed for 2022. Looking at the overall result in the current period January-April 2022, the cumulative budget deficit amounts to € 36.4 mil. or 0.7% of GDP, and is lower than planned by € 120.5 mil. or 76.8%. compared to the same period of 2021, the budget deficit is lower by € 107 million, or 74.6%.

 

Attachment: GDDS 4 table

* Data in the GDDS table represent an overview of revenues and expenditures by economic classification in one month, compared to the plan and the same period last year.

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