Montenegro swings to 10 mln euro budget surplus in 2023

In its revised 2023 budget, Montenegro projected a 216 million euro deficit for the year, equivalent to 3.4% of GDP, but managed to beat the plan thanks to higher revenue and lower costs, the finance ministry said in a statement on Friday.

Last year, budget revenue came in at 2.565 billion euro, up by 5.9% compared with the revised plan and 28.6% higher on the year, according to the statement. Budget expenditure totalled 2.555 billion euro, down by 3.2% compared with the revised 2023 budget and 13.8% higher compared to 2022.

In 2023, revenue from value added tax rose 3% compared with the revised budget plan and was 16.7% higher on the year at 1.059 billion euro, supported by an excellent tourism season, improved tax discipline and significant rise in exports and household consumption, the finance ministry noted.

Excise duty revenue came in at 323 million euro in 2023, up by 9% compared with the revised projection and 31% higher compared with 2022.

In the budget expenditure structure, current expenditures fell 0.7% compared with the revised budget plan and rose 16% on the year, to 1.072 billion euro in 2023. Costs for gross salaries and contributions had the largest share in total - of 643 million euro, up by 8.4% compared with the revised budget plan and 1.3% higher on the year.

Last month, Montenegro's 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 a projected growth of 4.8% in 2023.

($ = 0.928 euro)