In the past year, there was a steady rise in budget revenues, indicating an upturn in the country’s economic activity as well as an improved standard of living for its populace, largely attributed to the increase in disposable incomes, as reported by the Ministry of Finance.

Preliminary figures indicate that the total budget revenues for the previous year reached EUR 2.76 billion, which accounts for 37.8 percent of the estimated gross domestic product (GDP) and represents an increase of EUR 202.3 million or 188.6 percent compared to 2023.

“When excluding one-time revenues, budget revenues last year were EUR 333.8 million or 14 percent higher than those in 2023,” the Ministry clarified.

The budget revenue categories that consistently showed growth throughout the previous year primarily included corporate income tax, personal income tax, value-added tax, and excise duties.

Corporate income tax totaled EUR 214 million, marking an increase of EUR 62.7 million or 41.4 percent over 2023, exceeding the revised projections by EUR 8.3 million.

Personal income tax collections reached EUR 88.2 million, reflecting a notable rise of EUR 21.7 million or 32.7 percent compared to 2023.

“Contributions amounted to EUR 584.7 million, exceeding the previous year’s figures by nine million, while value-added tax collections stood at EUR 1.22 billion last year, which is an increase of EUR 163.3 million or 15.4 percent compared to 2023,” the report added.

The capital budget was realized at EUR 251.17 million, representing 106 percent of the planned capital budget for this timeframe, and reflecting an increase of EUR 62.15 million or 32.9 percent from the same period last year.

“There was also notable growth in budget revenues from excise duties, which amounted to EUR 368.6 million, representing an increase of EUR 45.5 million over 2023. The most considerable rise was noted in excise duties on mineral oils and their derivatives, while revenues from tobacco and tobacco product excise duties surpassed last year’s total collection as early as October,” the statement explained.

The Ministry noted that in the previous year, cigarette sales increased by approximately 94 tons compared to 2023, and sales of smokeless tobacco saw an uptick of more than one and a half million packs. This change is partly a result of efforts to address irregularities and combat the gray economy in the tobacco sector.

In December of last year, budget revenues alone totaled EUR 257.3 million, marking an increase of EUR 3.5 million compared to the same month in 2023.

The capital budget for December was realized at EUR 93.91 million, achieving 225.9 percent of the target, which is EUR 33.37 million or 35.5 percent more than December 2023.

“The budget deficit for the previous year was lower than anticipated, standing at EUR 230.9 million or 3.2 percent of estimated GDP, which is EUR 4.5 million less than planned. Furthermore, during this period, a current expenditure surplus of EUR 49.9 million was achieved, exceeding expectations by EUR 34.3 million, whereas the plan had projected a current expenditure surplus of EUR 15.5 million,” the Ministry specified.

By achieving a current expenditure surplus, they concluded, the criteria of fiscal responsibility outlined in the Budget and Fiscal Responsibility Law were met. This so-called golden fiscal rule stipulates that current expenditures and transfers should be less than current revenues and donations, meaning that the state should only borrow to finance capital projects and repay debts.

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