Report on the execution of the budget of Montenegro in the period January – September 2021

Published on: Nov 7, 2021 11:00 PM Author: Ministarstvo finansija i socijalnog staranja

Revenues higher than planned, deficit for 9 months reduced to 1.4% of GDP

Budget revenues of Montenegro from January to the end of September this year are higher than planned, and for nine months the budget deficit was reduced to 1.4% of GDP and amounted to 64.7 mill. €, which is less by 108.6 mill. € or 62.7% of the planned. The nine-month deficit is lower by 268.2 mill. € or 80.6% compared to the same period in 2020.

Revenue collection, which is above the plan for 9 months of the current year, is an indicator of the successful summer tourist season, as well as improved tax discipline due to the implementation of electronic fiscalization of tax registers.

The trend of good revenue collection on the one hand, i.e. the realization of expenditures in the amount lower than planned, continued in September. Revenues for that month in the amount of 172.2 mill. € are higher than those realized in September 2019, which was a record in terms of tourism revenues.

In September, a slight budget deficit of only 0.1% of GDP was recorded, which is primarily the result of the payment of interest on Eurobonds from 2019 in the amount of 12.7 mill. €. When interest expenses are excluded, in the observed month the primary surplus is recorded in the amount of 7.7 mill. €.

Budget revenues in the period January - September 2021 amounted to 1,344.5 mill. € or 29.0% of GDP, which compared to the same period last year increased by 178.6 mill. € or 15.3%, while compared to the plan it is higher by 7.1 mill. € or 0.5%.

The highest growth, both in relation to the planned and in relation to the same period of the previous year, was recorded in the revenues on the basis of VAT in the amount of 38.7 mill. € or 8.5%, i.e. 104.7 mill. € or 26.9%, which is the best indicator of the recovery of economic activity after the recorded decline from over 15% in 2020. Also, the implementation of electronic fiscalization of tax cash registers contributed to the achieved good result based on the collection of this category.

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, revenues from excises continue to record an increase compared to the comparable period in 2020, as well as compared to the plan by 28.9 mill. € or 18.9%, or 5.3 mill. € or 3.0%.

Significant growth compared to the previous year was also recorded in the category of other revenues in the amount of 16.4 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 12.1 mill. € 20.6% 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.

Personal income tax revenues are lower than planned in the amount of 15.5 mill. € or 15.3%, as a result of the planned but unrealized effects of the Draft Law on Amendments to the Law on Personal Income Tax due to the non-adopted Draft Law on Tax Administration, which was supposed to create preconditions for collecting revenues based on taxation of undeclared income, and which has been in the parliamentary procedure since mid-May this year. Compared to the same period last year, revenues based on the mentioned category are higher by 3.1 mill. € or 3.8%.

Budget revenues in September amounted to 172.2 mill. €, which is 29.7 mill. € or 20.8% more compared to the same month last year, while compared to the plan it is higher by 1.9 mill. € or 1.1%. The realized collection in September is also above September 2019 by 6.3 mill. € or 3.8%. 


Budget expenditures in the period January - September 2021 amounted to 1,409.2 mill. € or 30.4% of the estimated GDP and are lower than planned by 101.5 mill. € or 6.7%. Compared to the same period in 2020, budget expenditures are lower by 89.6 mill. € or 6.0%.

Almost all expenditure categories were recorded less than planned.

In the structure of budget expenditures, current expenditures were realized at the level of 611.5 mill. € and are lower by 36.2 mill. € or 5.6% compared to the planned. When we compare with the same period last year, current expenditures are at the same level as for 9 months of 2020.

Capital expenditures were realized in the amount of 107.8 mill. €, which is by 55.6 mill. € or 34.0% less than planned, while compared to the execution in the same period in 2020 they are lower by 41.0 mill. € or 27.6%. 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 30.0 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 9 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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