Looks like Montenegro isn’t drowning in financial chaos after all! In the first five months of this year, the budget deficit was just 45 million euros, a mere 0.6% of the estimated GDP. That’s a whopping 61.2 million euros better than planned! Is this a sign the economy is breathing or just some statistical smoke and mirrors? Revenues climbed to 1.09 billion euros, up 0.8% from last year. Taxes went on a rollercoaster ride: corporate profit tax rose by 7.6%, personal income tax shot up by 20.9%, and VAT jumped 12%! Is this real growth or just less shadow economy? Excise duties also increased by 8.2%, and other revenues skyrocketed by an eye-popping 66.1%! Expenses, of course, outpaced revenues but not by much — 1.14 billion euros or 14.3% of GDP. Social protection transfers surged by 12.8%, while transfers to NGOs dropped by 3.5%. The capital budget stands at 40.15 million euros, with a 14.5% increase in May. All in all, Montenegro is wrestling with its deficit but not falling off a cliff. Or is it? Got thoughts? Drop them in the comments and let’s see who’s the optimist and who’s the doom-monger!
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