Montenegro began the year on a positive note, witnessing growth across all primary revenue categories. The Ministry of Finance reported a budget surplus of two million euros for January.

According to the Ministry, January’s budget revenues reached 156.2 million euros, reflecting an increase of 5.2 million euros, or 3.5 percent, compared to the same month last year.

“The first month of this year has been marked by dynamic economic growth and a surge in economic activity. Revenues from corporate income tax in January stood at 4.8 million euros, representing an increase of 2.8 million euros or 143.9 percent compared to January of the previous year,” the statement indicated.

Personal income tax revenues totaled three million euros, which is an increase of one million euros or 51.7 percent from the same month last year.

The Ministry highlighted that the Government, adhering to the principles of macroeconomic stability and sustainable public finances, has raised the minimum wage. The minimum wage for individuals with up to level V educational qualifications is now set at 600 euros, while those with level VI and above will receive 800 euros.

“Consequently, the average net salary in December of the previous year was 1.01 thousand euros, which notably contributed to an expansion of the personal income tax base,” explained the Ministry.

Contributions amounted to 16.6 million euros, reflecting an increase of 3.1 million euros or 22.6 percent compared to January of the previous year.

The Ministry also reminded that adjustments to the law have been adopted to alleviate the tax burden on labor, which includes reducing the employee contribution rate for pension and disability insurance (PIO) from 15 percent to ten percent, and eliminating the employer’s PIO contribution from 5.5 percent to zero.

“These measures, implemented since October last year, have significantly boosted the minimum and average wages in the economy, while contributing to an increase in budget revenues from contributions compared to the same month of the previous year,” the Ministry stated.

Value Added Tax (VAT) revenues totaled 96.6 million euros, indicating an increase of five million euros or 5.5 percent over the same month last year.

“The remarkable rise in VAT revenues can be attributed, among other factors, to increased consumption driven by rising disposable incomes. Nonetheless, it was noted that VAT refunds for the month were higher than in January last year, amounting to 13.9 million euros, which is 11.8 million euros more,” the statement clarified.

Excise revenues also saw an uptick, aided by the expansion of taxed products including non-carbonated beverages with added sugar, as well as the introduction of excise duties on “still” wines and “fuel marking”.

Specifically, excise revenues amounted to 23.7 million euros, an increase of 1.1 million euros or 4.9 percent compared to January of the previous year.

“Considering the realized revenues and expenses, a budget surplus of two million euros was achieved in January, equivalent to 0.03 percent of the estimated gross domestic product (GDP), which exceeds the planned deficit of 60.5 million euros by 62.5 million euros,” added the Ministry.

Despite facing challenges in the first month, including temporary financing and delays in budget approval by the Assembly, the Ministry of Finance, according to its representatives, has managed to meet all regular obligations on time, ensuring the stability of public finances and sustaining the trend of economic growth.

“This once again demonstrates our high level of professionalism and responsibility towards the state budget, alongside our efficiency and competency in managing public funds,” the statement concluded.

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