Montenegro’s H1 budget income increases 8.6% y/y to EUR 502mn

By bne IntelliNews July 26, 2013

Montenegro's budget proceeds increased 8.6% y/y to EUR 501.6mn in the first six months of the year lifted by higher inflows from VAT, social contributions and excise duties, according to a report published on the government’s website. The H1 budget revenue exceeded the EUR 496.5mn target for the period.

The VAT proceeds climbed 12.3% y/y to EUR 183mn over the period, likewise exceeding the initial plan by EUR 170.7mn. Their share in total revenue also increased to 36.4% from 35.3% a year earlier. The recent VAT hike from 17% to 19% will likely support further rise in income from VAT in the coming months.

Revenue from excise duties rose 10.7% y/y to EUR 66mn in January-June whereas social contributions went up 5.0% to EUR 157mn over the period.

Income from profit tax increased 9.4% to EUR 28mn in H1, also contributing to lift the overall budget income. Revenue from personal income tax grew by 11% y/y to EUR 37.3mn, supported by the personal income tax hike from 9% to 15% that came into effect in February.

Rising budget revenue was the result of progress made in curbing the grey economy, the government said in a statement. The statement did not disclose details on the level of budget expenditures or balance.

In July, the government approved a budget rebalance in an attempt to help insolvent aluminium firm KAP pay out its electricity bills amounting to EUR 61mn and cover EUR 102mn worth of state guarantees issued on KAP’s bank loans. The 2013 budget revision will be discussed in the parliament on August 1.

Under the 2013 budget law, Montenegro plans to halve its budget gap to 2.73% of GDP (EUR 95mn) from 5.86% of GDP (EUR 196mn) last year thanks to bigger tax revenue and improved budget revenue collection.

Montenegro's budget income, EUR mn H1 2012 H1 2013 Plan H1 2013 y/y, %
VAT 162.8 182.9 170.7 12.3
Social contributions 149.2 156.7 156.4 5.0
Excise duties 59.6 66.0 66.2 10.7
Profit tax 25.7 28.1 26.0 9.4
Personal income tax 33.6 37.3 36.6 11.0
Customs revenue 16.4 17.6 10.4 7.4
Total 461.7 501.6 496.5 8.6
Source: Government of Montenegro    

Related Articles

Montenegro’s PM confirms readiness to join Nato - despite shove from Trump at alliance summit

Montenegro’s Prime Minister Dusko Markovic said on May 25 that the Adriatic country is fully prepared to ... more

Ex-Montenegrin President Marovic missing after receiving prison sentence

Montenegro’s court issued an arrest warrant on May 12 for former President Svetozar Marovic who has not been found in his hometown and has not ... more

Adriatic ports hit by Venice tourist clampdown

The number of cruise ships visiting Dubrovnik and other Croatian ports is set to fall dramatically in 2017, a new report presented at the Adriatic Sea Forum has revealed.  As the historic ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at