Podgorica, (MINA-BUSINESS) – According to the Ministry of Finance, Montenegro recorded a budget deficit of €96.8 million in the first five months of the year, equivalent to 1.13 percent of estimated gross domestic product (GDP). 

“The budget recorded strong revenue growth in the first five months compared with the same period last year,” the Ministry said in its budget execution report for May. 

The Ministry stated that €1.19 billion in budget revenue was collected during the period, representing 13.9 percent of estimated GDP and an increase of 8.2 percent compared with the same period last year. 

Revenue also exceeded the five-month budget plan by €24.4 million, or 2.1 percent.

“In the first five months budget revenues continue to follow strong and stable economic trends in Montenegro, confirming the positive effects of the reforms. Revenue growth was recorded across all major tax categories, indicating stronger economic activity, rising employment and wages, stable household consumption, and improved tax compliance,” the report said.

The Ministry added that total revenues exceeded projections despite temporary support measures for citizens and businesses, including a reduction in fuel excise duties. According to the report, these results demonstrate the resilience of Montenegro's economy to challenges from the international environment and provide a solid foundation for achieving the government's fiscal policy objectives.

Revenue from personal income tax amounted to €40.7 million, up 5.1 percent from the same period last year and 1.1 percent above plan.