Montenegro's consolidated budget, which includes the state-level and local governments’ budgets, recorded a deficit of EUR 87.9mn in 2013, equal to 2.7% of the GDP, down from 6.1% of GDP a year ago, data from the ministry of finance showed. The state-level budget posted a deficit of EUR 128.3mn (3.9% of GDP) due to higher-than-planned expenditures related to the bankrupt aluminum smelter KAP.
The local government budget, on the other hand, recorded a surplus of EUR 40.4mn (1.2% of GDP) as revenue increased while expenditures declined over the period. Local governments’ revenue grew 3.7% to EUR 185.5mn in 2013 lifted by higher tax proceeds. Income from local taxes rose 22.5% to EUR 62.4mn last year (34% share in total local budget revenue). Personal income tax revenue increased by 4.1% to EUR 28.5mn over the period. Local governments’ expenditures shrank 8.6% to EUR 146.5mn in 2013 as falling goods and services and capital spending offset higher employment expenses.
According to the 2014 budget law, Montenegro plans to cut its state budget deficit by half to 1.98% of GDP in 2014, due to expected higher budget revenue supported by a 3.6% GDP expansion. If the government meets its official target, this will likely also translate into lower consolidated budget gap.
Related Articles
EBRD boosts Montenegro’s flagship wind farm with €26mn loan
The European Bank for Reconstruction and Development (EBRD) said on August 19 that it is deepening its support for Montenegro’s green transition with an additional €26mn loan to expand the Gvozd ... more
EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses
The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more
EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023
EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
23 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
Hungarian economy faces weak growth, slow path to price stability, central bank report shows
2 months ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago