April 3 (SeeNews) - Montenegro's budget turned to an 18.4 million euro ($19.8 million) deficit in the first two months of the current year, compared with a 92 million euro surplus in the prior-year period, the finance ministry said.
The deficit, however, was considerably below the planned gap of 110.6 million euro for January-February, the ministry said in a statement last week.
In February alone, the budget reported a deficit of 34.3 million euro, larger than the 28.1 million euro gap reported for February 2023.
Two-month budget revenue was 7.7% higher on the year and 8.8% above planned, totalling 334 million euro, or 4.7% of the projected full-year gross domestic product (GDP), the statement read.
Tax revenue rose by an annual 25% to 243 million euro in the first two months of 2024, and was 8.5% higher than planned.
The ministry noted that in January-February 2023 the state budget received a one-off payment of 42 million euro under the form of licence fees paid by telecommunication firms for the use of radio frequencies for 5G services, while in the first two months of 2024 one-off revenue was 5.8 million euro.
Budget expenditures for the two months stood at 352 million euro, or 5% of the estimated GDP. They were 23% higher on the year but came 16% below planned. Current expenditures rose by an annual 15% to 144 million euro in January-February, and were 18% less than planned. Social security transfers increased by 20% on the year to 150 million euro, but were 6.0% less than planned.
Last year, Montenegro turned to a budget surplus of 10 million euro, equivalent to 0.2% of GDP, compared with a 250 million euro deficit in 2022.
In January, the Montenegrin parliament approved the 2024 state budget with a fiscal deficit equivalent to 3.1% of GDP. The budget targets revenues of 2.717 billion euro and expenditures of 2.952 billion euro.
Montenegro’s economy is expected to expand by 3.8% in 2024, slowing down from the estimated 6.0% growth in 2023.
($ = 0.930 euro)