Montenegro's budget balance turns to deficit of EUR 20.2mn in September.

By bne IntelliNews October 28, 2011
The budget deficit of Montenegro in the first nine months of 2011 reached EUR 63.83mn or 1.95% of the projected GDP for the year, the finance ministry reported. Total revenues stood at EUR 829.6mn, which is higher by 0.6% compared to the same period last year. The government posted improved collection of corporate tax and excise tax by 79.8% y/y and 12.6% y/y, respectively. Proceeds from VAT also increased on an annual basis - by 6.3%. Total expenditures rose by 8.2% y/y mainly as a result of a rise in social benefits and pensions expenses (up by 6.6% y/y), larger interest expenses (up by 86.6% y/y) and increased payments for wages (up by 39.4% y/y). In September alone, the budget balance returned to negative territory after posting a surplus (EUR 18.3mn) in August for the first time in six months. September ended with a deficit of EUR 20.2mn. As recalled, the government targets a deficit of 2.6% of GDP at year-end, which we believe is feasible.

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