Report on the execution of the budget of Montenegro in the period January – August 2021: Deficit for eight months reduced to 1.2% of GDP

Published on: Oct 4, 2021 10:26 AM Author: Ministarstvo finansija i socijalnog staranja

Surplus in August 61.5 mill. €

The state budget surplus in August this year amounted to 61.5 mill. €, which continued the trend of a positive result.


This is the third month in a row that the surplus is realized, which, including June and July, totals 105.7 mill. €.

The budget surplus in August is four times higher than in the same month in 2019, which was a record in terms of tourism revenues, and then amounted to 14.4 mill. €.

Budget surplus for these three months of this year amounted to 105.7 mill. € is primarily the result of the effects of the summer tourist season, as well as improved tax discipline due to the implementation of electronic fiscalization of tax registers.

Good collection of revenues largely compensated for the effects of non-adoption of amendments to the law that were a precondition for the implementation of measures aimed at generating new sources of revenue planned by the Law on Budget for 2021. Also, expenditures realized in the amount lower than planned significantly contributed to the realization of the surplus.

In accordance with the movement of revenues and expenditures, for eight months (January – August) 2021, a budget deficit amounted to 57.4 mill. € or 1.2% of GDP and is lower by 126.1 mill. € or 68.7% of the planned. Compared to the same period in 2020 it is lower by 253.9 mill. € or 81.6%.

Accordingly, the budget deficit was reduced from 3.5% of GDP in January - May to 1.2% of GDP in January - August 2021.

Budget revenues in the period January - August 2021 amounted to 1,172.2 mill. € or 25.3% of GDP, which compared to the same period last year increased by 148.9 mill. € or 14.5%. Compared to the planned, the collection of revenues is higher by 5.2 mill. € or 0.4%, which indicates the success of revenue planning in the year of extreme economic uncertainty caused by the pandemic, especially in the part of revenues generated from tourism.

The best indicator of the recovery of economic activity is the revenues from VAT, which are higher than planned by 34.2 mill. € or 8.7%, while compared to the same period in 2020 they are higher by 82.7 mill. € or 24.0%. Greater tax discipline, as well as the implementation of electronic fiscalization of tax cash registers, also contributed to the good collection on this basis.

Revenues from excises also recorded an increase compared to the comparable period in 2020, as well as compared to the plan by 20.1 mill. € or 15.2%, or 5.3 mill. € or 3.6%. This was achieved, despite the fact that the proposed legal solutions have not yet been adopted, which provided for an increase in excise duties on certain excise products, and which have been in the parliamentary procedure since mid-May.

Significant growth compared to the previous year was also recorded in the category of other revenues in the amount of 26.1 mill. € as a consequence of the payment of profit realized in 2020 by companies majority owned by the state. Compared to the plan, this category is lower by 12.2 mill. € 21.3% as a result of the fact that during the planning the assessment of the financial results of the companies was taken, while the payments were made in accordance with their final financial statements.


Budget revenues in August amounted to 190.1 mill. €, which is compared to the same month last year higher by 48.8 mill. € or 34.5%, while compared to the plan it is higher by 8.6 mill. € or 4.7%. The realized collection in August is also above August 2019 by 16.0 mill. € or 9.2%.

The growth of revenues in August was mostly contributed by the collection of VAT revenues, which are at the level of 82.2 mill. €, and is higher even compared to August 2019, which was a record year in terms of turnover when the net collection of VAT amounted to 71.7 mill. €.

Budget expenditures in the period January - August 2021 amounted to 1,229.7 mill. € or 26.5% of the estimated GDP and are lower than planned by 120.9 mill. € or 8.9%. Compared to the same period in 2020, budget expenditures are lower by 105.0 mill. € or 7.9%.

Almost all expenditure categories were recorded less than planned.

In the structure of budget expenditures, current expenditures were realized at the level of 532.4 mill. € and are lower by 52.7 mill. € or 9.0% compared to the planned. Compared to the comparable period in 2020, current expenditures are lower by 16.6 mill. € or 3.0%.

Capital expenditures were realized in the amount of 83.1 mill. €, which is by 56.2 mill. € or 40.3% less than planned, while compared to the execution in the same period in 2020 they are lower by 46.6 mill. € or 35.9%. The realization of capital expenditures is largely determined by the realization that depends on the dynamics of works, and is expected to be significantly improved in the coming period, especially bearing in mind the deadlines for the completion of the priority section of the highway.

Compared to the previous year, higher expenditures were recorded in:

Gross salary and contributions in the amount of 26.8 mill. € or 8.1% due to the increase of salaries in the sectors of health and education, as well as the different treatment of the gross salary fund of the University of Montenegro during 2020 in relation to the period of temporary financing during 2021.[1] 


Repayments of liabilities from the previous period as a result of forced collection based on the debt of "Montenegro Airlines" to "Airports of Montenegro".


Repayment of guarantees due to performed obligations based on the activated guarantee on the loan of the Chinese Exim Bank, for the ships of „Crnogorska plovidba“ and „Barska plovidba“.


Prilog: GDDS 8 tabela


* 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.



[1] In 2020, all costs of the University of Montenegro (including gross salaries) were planned on the expenditure Transfers, while temporary financing reclassified by expenditures, which increased the total fund of gross salaries in 2021



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