Ministry of Finance: May Revenues Higher Than Last Year – But Don’t Pop the Champagne Yet!
The Ministry of Finance of Montenegro announced that total budget revenues in May this year were higher than in the same period last year. Official data shows that revenues for the first five months amounted to 1.0 billion euros, which is 0.8% more than last year and represents 13.8% of the Gross Domestic Product (GDP). At first glance, it looks like the country is on the right track, right?
But hold on, there are some technical hiccups!
The Ministry warns that some deviations from the plan in May are actually due to technical reasons – for example, revenues from the last days of May were recorded as June revenues, which is normal in public finance systems. Also, the introduction of a new electronic payment system caused temporary delays in submitting some tax declarations. So don’t panic if you see small fluctuations – it’s not a sign of fiscal collapse.
Which taxes grew?
All key tax categories show growth compared to last year. Indirect taxes, such as VAT and excise duties, brought in 62.4 million euros more. Personal income tax increased by 6.7 million, and corporate profit tax rose by a whopping 14.1 million euros. This growth shows that the collection system is working and the state successfully compensates for short-term fluctuations.
Deficit? What deficit!
The budget deficit for the first five months of this year is only 0.6% of GDP, which is 61.2 million euros less than planned. Even better, a current expenditure surplus of 8.4 million euros was achieved, meaning the state is not spending more than it has – kudos for responsible management!
Tourist season hasn’t even started yet!
It’s important to note that the effects of the main tourist season, which is the main driver of revenue growth, are not yet fully reflected in this report. Most payments from the previous month are realized in the middle of the next month, so the real revenue boom is yet to come.
Donations and reforms – we’re waiting!
Donation revenues were realized at 87.2% of the planned level, due to the timing of payments. The reform agenda, crucial for Montenegro’s future, is still awaiting implementation in the coming months.
Conclusion? Everything is under control, but don’t forget the challenges!
The Ministry of Finance, in cooperation with international institutions, carefully monitors all fiscal risks and takes measures to maintain the stability of public finances. In short, the budget is stable, revenues are growing, and the deficit is lower than expected. But, as always, caution is needed and the situation should be monitored because technical fluctuations and delays can confuse those who don’t look deeper.
Is this really a reason to celebrate or just another story about “stability” hiding real problems? If you have thoughts, feel free to share – maybe together we’ll uncover what’s really going on behind the scenes of Montenegro’s economy! 😉
