July 30 (SeeNews) - Montenegro's government expects budget revenue to rise to 1.83 billion euro ($2 billion) in 2019, or 38.2% of the projected gross domestic product (GDP) for this year, finance minister Darko Radunovic said.
The budget revenue will increase by 6 million euro year-on-year in 2019, Radunovic said on Monday in a video file posted on the YouTube channel of the Montenegrin government.
Montenegro's state budget for 2019 envisages 1.82 billion euro in revenue.
"The government is implementing economic policy measures aimed at strengthening the fiscal stability and increasing competitiveness, which gave good results," Radunovic said during budget revision discussions in Parliament.
Earlier this month, Radunovic said Montenegro's government plans to revise the 2019 budget in order to refinance existing debt and create a fiscal reserve for repayment of obligations due next year. According to the proposed plan published on the government's website, the 2019 budget deficit will amount to 142.6 million euro, slightly higher than the originally projected gap of 142.2 million euro.
The revision will not change the planned budget deficit equivalent to 2.97% of GDP but will create opportunities for the issuing of securities or taking out a loan of 500 million euro, Radunovic said back then.
"The second reason for the revision is the government's decision to contribute to raising the standard of living of the lowest-paid employees through a policy of raising the minimum wage, while at the same time providing a reduction in the tax burden through a reduction of contributions," Radunovic said on Monday.
Budget expenditure under the proposal is set at 1.976 billion euro, up from original 1.970 billion euro, according to the proposed plan published on the government's website.
Montenegro's 2018 budget deficit amounted to 159.2 million euro, equivalent to 3.5% of the country's GDP.
($ = 0.8973 euro)