Ministry of Finance: Financial situation stable

The Ministry of Finance announced that the financial situation in Montenegro is stable, and that the execution of the state budget in the first six months of 2025 confirms positive trends.

"Total budget revenues amounted to 1.322,8 million euros, which is one percent more than in the same period last year. Key categories of tax revenues recorded strong growth, with VAT collected in the amount of 66,1 million euros more than last year, while corporate income tax increased by 18,9 million euros. Revenues from excise duties recorded an increase of 12,6 million euros, and personal income tax by 8,8 million euros," the Ministry of Finance announced.

In the first six months, they add, the budget deficit is nine million euros lower than planned and is at the level of 1,4 percent of estimated GDP.

"Therefore, these data clearly refute the allegations of a decline in revenues and indicate the efficiency of the implemented reforms in the area of tax and fiscal policy, which are already yielding results through increased collection and strengthening of fiscal discipline. At the same time, the execution of expenditures in June - which is 6,7 percent above the plan - is explained clearly and transparently in the Budget Execution Report itself. The dominant reason is the realization of capital expenditures, primarily the costs of purchasing military ships for the needs of the Army of Montenegro, financed from a dedicated loan arrangement with the Government of the Republic of France," it was announced.

This transaction, which is recorded through the expenditure and revenue side of the budget, it is added, does not represent a budget deficit, but an investment of strategic importance for the security and defense of the state, about which the public was previously informed.

"Despite individual deviations in the dynamics of collection and realization of certain items, revenue execution compared to the plan amounts to 97,3 percent, with the realization of the remaining items, including donations and grants, expected in the rest of the year. Also, preliminary data for July indicate collection above the plan, which confirms the continuation of the positive trend. Thanks to stable macroeconomic conditions, fiscal consolidation measures and the suppression of the shadow economy, Montenegro is successfully maintaining the stability of public finances, which is confirmed by the fact that total revenues for June 2025 amounted to 225,8 million euros, which is 2,1 percent more than in the same month of the previous year," the statement reads.