Montenegro's budget surplus shrinks to 33 mln euro in Jan-May

The five-month surplus was equivalent to 0.5% of the projected full-year gross domestic product (GDP), the finance ministry said in a statement on Sunday, adding that the budget plan had envisaged a 141 million euro deficit for the period under review.

In May alone, the budget deficit rose to 21.6 million euro from 3.3 million euro in May 2023.

The five-month budget revenue was 10.7% higher on the year and 7.7% above plan, at 1.089 billion euro, or 15.5% of GDP.

Tax revenue rose by an annual 20.6% to 806 million euro in the first five months of 2024, and was 8.0% higher than planned.

Budget expenditures for the five months stood at 1.056 billion euro, or 15% of the estimated GDP. They were 20.7% higher on the year but came 8.4% below plan. Current expenditures rose by an annual 8.1% to 428 million euro in the January-May period, and were 10% less than planned. Social security transfers increased by 23.5% on the year to 399 million euro, but were 11.6% less than planned.

Montenegro closed last year with a budget surplus of 10 million euro, equivalent to 0.2% of GDP.

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.

Last week, prime minister Milojko Spajic was quoted as saying by local media that the government plans to revise the 2024 state budget in order to raise the financing for ongoing capital projects, whose implementation runs faster than envisaged.

Montenegro’s economy is expected to expand by 3.8% in 2024, following 6.0% growth estimated for 2023.

($ = 0.934 euro)