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6.8 Budget and debt - Montenegro
Montenegro’s government adopted the budget for 2024 in mid-December, targeting a deficit of €800mn, with revenue seen at €2.7bn, and spending at €3.48bn. Prime Minister Milojko Spajic said that the government’s plan for the next three years is to borrow only for capital spending and for servicing old debt. All current spending should be financed by the current revenue.
Finance Minister Novica Vukovic said that the government has projected revenue from VAT to reach €1.19bn, while income tax revenue should total €676mn and the profit tax is seen at €164mn.
In 2024, Montenegro will have to repay €656mn of debt.
According to the budget plan, the minimal pensions will be increased to €450 as of January 1, 2024.
The capital spending should be €40mn higher than in 2023, Spajic also said. Within capital spending, the government has included between €80mn and €90mn for the start of construction of the second stretch of the key Bar-Boljare motorway.
Another €10mn should be spent on capital investment in Montenegro’s northern part, which is the poorest.
Vukovic said that the government intends to spend €760mn for capital investment in the next three years.
Montenegro posted a budget surplus of €183.6mn in the first nine months of 2023, equivalent to 3% of the estimated GDP. The revenue collected during the January to September period amounted to over €2.12bn, a significant 34.4% of the estimated GDP. This figure
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