In a remarkable fiscal update, Montenegro’s budget deficit has shown a vastly improved stance against projections. The first seven months of the current year saw a budget deficit of 97.2 million euros, translating to 1.2 percent of the estimated GDP. The Ministry of Finance proudly reports that this figure is 31.2 million euros more favorable than the planned deficit. As stated in vijesti.me, responsible fiscal strategies were crucial to this outcome.

Financial Discipline and Public Spending Sustainability

The Ministry accentuates the achievement of a current spending surplus, amounting to 33.5 million euros, as a positive indicator of financial discipline and the sustainability of public spending. The success in public finance management reinforces confidence in the fiscal policies in place. These strategies align with the government’s overall stability agenda, ensuring that public finances are diligently managed.

Revenue Surge Amidst Managed Expenditures

The period in focus witnessed budget revenues hit 1.58 billion euros, edging out the previous year’s figures by six million and signaling robust fiscal health. July alone accounted for 256.1 million euros, surpassing expectations by 4.8 percent, with expenditures kept in check. This combination yielded a budget surplus of 13.5 million euros for the month, a considerable improvement over expectations of a deficit.

Corporate and Personal Income Taxes on the Rise

The main revenue categories saw encouraging growth, with corporate income tax generation reaching 215.9 million euros, an 18.3 million increase over the past year. Similarly, personal income tax rose by 10.6 million or 23.1 percent, reflecting the growing economic activity despite global economic challenges.

Value Added Tax and Excise: Beyond Expectations

VAT contributions also exceeded expectations, raking in 738.1 million euros, a substantial 12.6 percent higher than the previous fiscal year. Despite increased VAT refunds by 19 percent, income from excise duties sustained a 9.9 percent growth, reinforcing the strength in consumer spending and production.

Commitment to Development and Social Support

Capital expenditures mounted to 130.7 million euros, showcasing the government’s investment in the country’s development. Moreover, social protection transfers saw an 11.3 percent uptick. Strategic focus has been on subsidies for employment among individuals with disabilities and accelerating the digitalization of public services.

Maintaining Strong Fiscal Foundations

The Ministry of Finance vows to persist in nurturing fiscal stability, optimizing revenue collection while wisely managing expenditures. The budget results serve not only as a testament to current fiscal health but also as a promise for Montenegro’s continued progression towards macroeconomic stability and growth.

The Ministry’s announcement solidifies a robust fiscal foundation, as indicated through strengthened revenue figures and effective expenditure controls. Montenegro looks ahead with confidence, underpinning its economic policies with responsible management and forward-thinking investments.