PODGORICA (Montenegro), February 4 (SeeNews) – Montenegro reported a record-high budget deficit of 419.5 million euro ($503 million) in 2020, compared to a deficit of 143.3 million euro in 2019, official figures show.
The deficit accounted for 9.8% of the estimated gross domestic product (GDP) for 2020, 24.9% above plan, the finance ministry said in a statement on Wednesday.
"The endangered liquidity of the economy as a result of limited economic activity in the conditions of the pandemic, as well as the need for additional financing caused by the implementation of a package of measures to support the economy and citizens, have led to the largest budget deficit since independence," the finance ministry said.
Primary budget deficit totalled 308.4 million euro, versus a 37.5 million euro primary budget surplus in 2019, according to data published on the website of the finance ministry.
Total budget revenues fell by a real 13.1% on the year to 1.639 billion euro in the period under review, while expenditure increased 1.5% to 2.059 billion euro.
Tax revenues edged down by a real 17.6% to 966.1 million euro, contributions went down 2.8% to 531 million euro, and taxes decreased to 10.6 million euro from 15.7 million euro.
On the expenditure side, current expenditure rose by a real 4.3% to 857.9 million euro, while capital expenditure went down to 223.9 million euro from 344.9 million euro in 2019.
($ = 0.8341 euro)