In the first seven months of this year, Montenegro achieved a budget surplus of 42 million euros, instead of the conservatively planned deficit, which is 220,3 million euros better than the plan, the Ministry of Finance announced.
"The trend of good collection and positive fiscal trends continues, and there was a strong increase in budget revenues compared to the plan and the same period last year," the Ministry's announcement states.
They added that seven-month revenues exceeded the plan by 6,5 percent, and that a budget surplus of 42 million euros or 0,6 percent of the estimated gross domestic product (GDP) was achieved.
"The planned deficit was 178,3 million euros, which means that the budget balance is 220,3 million euros better," said the Ministry, adding that the budget appropriations, excluding those of a one-time nature, had increased by 237,2 million or 18,2 .XNUMX percent compared to the comparative period.
Total budget revenues by the end of July amounted to 1,57 billion euros or 22,3 percent of the estimated GDP.
"The capital budget was realized in the amount of 78,6 million euros, which is five percent of the total spending, that is, 84,3 percent of the plan. This is 59,7 percent more than in seven months of the previous year," the Ministry stated.
They said that in seven months, 197,6 million euros were collected from corporate income tax, 45,5 percent more than in the comparative period, and 35,6 percent more than planned.
A strong growth was also registered based on the collection of personal income tax, which amounted to 45,9 million, 19,9 percent more than planned, and 45,8 percent more than in the comparative period.
"The contributions amounted to 321 million euros, which is 5,3 percent more than the plan, and 10,8 percent more than in the comparative period," the announcement states.
The Ministry announced that the continuous activities of the Tax Administration (TA) significantly accelerated the dynamics of value added tax (VAT) refunds, thus ensuring the stability of the business environment and affecting the abolition of business barriers in the economy.
"Thus, at the end of July, VAT revenue was 655,4 million euros, or 2,1 percent more than planned, and 15,3 percent more than in the comparative period. The VAT refund was 60,9 million, which is 10,6 percent more than in the comparative period," said the Ministry.
They added that there was also a significant increase in revenue from excise taxes, which amounted to 195,1 million euros at the end of July, 13,7 percent more than in the same period of the previous year, and 0,5 percent more than planned.
Growth was also recorded in the other income category, 8,5 percent compared to the plan.
"A strong increase in budget revenues was also recorded during July, so they amount to 260 million euros or 25 percent more than in the comparative period, i.e. 8,4 percent more than the plan. So, in July, a budget surplus of 11,5 million was realized, and it was projected a deficit of 24,9 million euros," said the Ministry.
They added that during July, almost all budget revenue categories recorded growth compared to the plan and the comparative period. Excise duties are at almost the same level as in July last year, while a deviation of 8,1 percent was recorded compared to the plan.
"In seven months, a lower realization of expenditures was achieved compared to the planned, 7,6 percent", said the Ministry and stated that the state realizes all incoming obligations in real time, and that there are currently no obligations that have come due.
"Compared to the same period of the previous year, expenditures are higher by 17,9 percent, and the biggest deviation was recorded in the allocation for the payment of rights from the field of pension and disability insurance, dominantly due to the increase of the minimum pension, transfers to institutions and more significantly to public health institutions, as and the increase in allocations for gross wages, which is a consequence of the adoption of branch collective agreements that increased the wages of employees in the public sector last year," the announcement states.
The Ministry said that, if the structure of the budget is observed, the current one for seven months amounted to 1,45 billion euros, or 95 percent of the total expenditure.
"Expenditures in the current budget in this period amount to 595,9 million euros, which is 92,6 percent of the plan, and the lower achievement was recorded dominantly in gross earnings, expenditures for materials and current maintenance, as well as other expenditures. Also, interest rates are lower execution compared to the plan of 8,5 million euros, which is in line with the dynamics of debt repayment," the Ministry announced.
Transfers for social protection amounted to 571,9 million euros, which is almost 12 million euros lower than the plan and refers to rights in the field of social protection and pension and disability insurance, which are realized in accordance with the actual calculation, which is lower than initially planned .
"In July, expenditures amount to 248,4 million euros and are 6,1 percent less than the plan, and the deviation is mainly related to the lower realization for reserves of 9,3 million and transfers to institutions, individuals, non-governmental and public sector of 3,4 million" , said the Ministry.
Transfers for social protection amounted to 88,66 million euros, which is 2,69 million more than the plan, and they mainly refer to expenditures based on treatment outside the system of public health institutions in Montenegro at the Health Insurance Fund.
The capital budget in July was realized at the level of 18,7 million euros, which represents 91 percent of the plan.
"In the rest of the year, through responsible management and rational execution of the state budget, the Ministry of Finance will strive to continue positive trends and surpass its own conservative revenue plan, preserving the stability of public finances and providing the necessary fiscal reserves for the coming year," the announcement concludes.
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