Montenegro's consolidated budget deficit narrows to 2.7% of GDP in 2013

By bne IntelliNews March 4, 2014
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

Freedom House keeps “partly free” status for Macedonia despite new government’s efforts

Macedonia was rated only “partly free” in the latest report from international watchdog Freedom House, the same almost all of the six Western Balkan countries, despite efforts by the ... more

Milo Djukanovic leads poll ahead of Montenegro’s presidential election

Veteran politician Milo Djukanovic has the highest chance of becoming Montenegro’s next president in the 2018 ... more

Veteran Montenegrin politician Milo Djukanovic to run for president in 2018

Montenegro’s ruling Democratic Party of Socialists (DPS) will most likely propose its veteran leader, former president and prime minister Milo Djukanovic, to ... more

Dismiss