Montenegro's 2012 consolidated budget deficit at 4% of GDP.

By bne IntelliNews March 15, 2013
Montenegro's consolidated budget gap narrowed to 4% of GDP (EUR 133mn) in 2012 from 5.45% of GDP (EUR 176mn) in 2011, data from the ministry of finance showed. The 2012 consolidated budget gap however exceeded the plan for the year by close to 30%. The state-level budget posted a deficit of EUR 164mn (4.9% of GDP) while the local government budget recorded an annual surplus of EUR 31mn (0.9% of GDP). The higher state deficit was partly due to a change in methodology, whereby starting from the year 2012, the deficit is calculated to include state guaranties as well, the ministry said. Until now they were directly included in public debt. The consolidated budget revenues edged up 1% to EUR 1.3bn in 2012, supported by local government revenues which climbed 14.7% to EUR 179mn. State budget revenue dropped by 0.9% y/y to EUR 1.1bn over the period as VAT proceeds remained below the planned for the year, shrinking 9.6% to EUR 355mn in 2012. Consolidated budget expenditures fell by 2.1% to EUR 1.4bn in 2012 (103% of the plan), supported by decline in state subsidies (down 43% to EUR 27mn) and capital expenses (down 11% to EUR 120mn). On the other hand, goods and services spending climbed 39% to EUR 167mn while social protection transfers went up 5.8% to EUR 482mn over the period.
Montenegro's consolidated budget, EUR mn 2011 2012 Plan for 2012
Total revenues 1,285.1 1,297.7 1,282.2
Tax revenues 794,5 786.0 803.9
out of which VAT 392.2 354.7 381.2
Social contributions 353.6 362.3 352.0
Total expenditures 1,461.3 1,430.8 1,385.4
Current expenditures 1,325.7 1,310.4 1,271.7
out of which Wages and social contributions 403.9 407.8 410.3
Capital expenditures 135.6 120.4 113.7
Budget deficit 176.2 133.1 103.1
Source: Min Fin

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