Montenegro's budget surplus halves to 54.6 mln euro in Jan-April

The four-month surplus was equivalent to 0.8% of the projected full-year gross domestic product (GDP), the ministry said in a statement on Friday, adding the budget plan had envisaged a 101.8 million euro deficit instead for the period under review.

In April alone, the budget surplus rose to 59.4 million euro from 49.0 million euro in April 2023.

Four-month budget revenue was 12.4% higher on the year and 10.7% above planned, totalling 896 million euro, or 12.7% of GDP, the statement read.

Tax revenue rose by an annual 24% to 666 million euro in the first four months of 2024, and was 9.9% higher than planned.

The ministry noted that in January-April 2023 the state budget received one-off payments of 75.2 million euro, while in the first four months of 2024 one-off revenue was 6.1 million euro.

Budget expenditures for the four months stood at 841.5 million euro, or 12% of the estimated GDP. They were 23% higher on the year but came 7.6% below planned. Current expenditures rose by an annual 12% to 341 million euro in January-April, and were 9.5% less than planned. Social security transfers increased by 23% on the year to 317 million euro, but were 3.0% 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 6.0% growth estimated for 2023.

($ = 0.921 euro)