At the end of the first quarter of 2025, budget revenues in Montenegro continued their upward trend, with total revenues reaching €580.4 million—equivalent to 7.3% of the estimated GDP and €4.7 million more than in the same period last year, according to the Ministry of Finance.
The ministry reported that the most significant increase was observed in value added tax (VAT) revenues, which amounted to €282.3 million. This represents an increase of €29.9 million or 11.9% compared to the first quarter of 2024. The surge was mainly attributed to increased economic activity, investment growth, and a reduction in the informal economy.
“Personal income tax revenues also recorded a notable rise, reaching €20.3 million, which is €5.3 million or 35.8% more than in the same period last year,” the statement said.
Capital budget spending in the observed period amounted to more than €21 million.
Revenues from excise duties totaled €71.5 million, exceeding both the plan and the amount collected during the same period in 2024 by €4.5 million or 6.8%. Notably, excise revenue from tobacco products rose by €3.8 million, a 19.4% increase year-over-year.
The ministry emphasized that the growth of the legal tobacco market and anti-smuggling measures are showing tangible results. In the first three months of 2025, cigarette sales increased by 10.3%, or 22.1 tonnes, compared to the previous year, while sales of smokeless tobacco products rose by about 23%, or 353,458 packs.
Other revenues for the period amounted to €8.1 million, which is €1.7 million or 26.8% above target.
In March 2025 alone, budget revenues reached €245.3 million, surpassing the amount collected in March 2024 by €0.8 million.
“Following a successful first quarter, the Ministry of Finance remains focused on preserving public finance stability by boosting revenue collection, tackling the informal economy, strengthening the formal economy, and managing public debt responsibly,” the ministry concluded.
