March 20 (SeeNews) - Montenegro's parliament said it adopted a revision of the 2018 state budget envisaging a rise in budget deficit to 139.14 million euro ($171.14 million), equivalent to 3.16% of the estimated gross domestic product (GDP).
The budget revision was proposed by the government on March 7 and adopted during a regular parliament session on March 19, according to data posted on the website of the Montenegrin parliament on Monday.
The revision envisages an increase of 57 million euro in budget revenues and a 82 million euro rise in expenses.
On the expenditure side, 70 million euro is planned for the purchase of part of the shares of power supplier Elektroprivreda Crne Gore (EPCG), 6.5 million euro for the repayment of debt of flag carrier Montenegro Airlines, 500,000 euro for the promotional activities of the National Tourist Organisation and 4 million euro for the implementation of public administration reform.
In December, the parliament adopted the state budget for 2018 envisaging a deficit of 116.2 million euro ($138.2 million) equivalent to 2.6% of the estimated gross domestic product (GDP). The budget bill, built on projections of economic growth of 3.0% in 2018, envisaged revenues of 1.705 billion euro and expenses of 1.821 billion euro.
The adopted change will reflect the government's plans to refinance debt under more favourable conditions, given the positive stance of the financial markets towards Montenegro, the government said in a statement earlier this month.
Montenegro's finance minister Darko Radunovic said in December the government expects to close 2017 with a budget deficit equivalent to 3.7% of the estimated GDP. Budget revenues were expected to exceed plan by 30 million euro in 2017, rising by 90 million euro above 2016 level, while expenses were projected to be 50 million euro lower year-on-year, Radunovic said at the time.
($ = 0.813069 euro)