Key facts
- Montenegro's budget deficit decreased by 23.2% year-on-year to EUR 25.0 million in January-April.
- Revenues increased by 8.2% year-on-year during the period.
- Expenditures grew by 7.1% year-on-year.
- Higher VAT proceeds, linked to resilient private consumption, boosted revenues.
- The state budget for 2026 projects a deficit of EUR 278 million, equivalent to 3.3% of projected GDP.
Montenegro has reported a significant contraction in its budget deficit, which fell by 23.2% year-on-year to EUR 25.0 million during the period from January to April. This fiscal improvement was primarily driven by a sharper increase in revenues, which grew by 8.2% year-on-year, compared to a more moderate 7.1% rise in expenditures over the same period. The growth in revenue is partly attributed to higher Value Added Tax (VAT) proceeds, reflecting sustained private consumption. Looking ahead, the state budget for 2026 anticipates a deficit of EUR 278 million, which is projected to represent 3.3% of the country's GDP.