Montenegro: Low capital investments and increase in tax revenue in 2013
According to the annual budget adopted late December, for the current year the government is planning for €1.26 billion ($1.68 billion) and foreseeing various increases in tax revenues. The planned budget deficit is expected to reach 2.73% of the GDP while the planned GDP growth rate has been set at 2.5%.
To realise all development plans to support planed growth, the government will take additional €250 million of financial credit funds.
One of planned measures for increasing tax revenues is raising the tax rate on salaries from 9% to 15%. Additional savings of €30 million are planned by freezing pensions in 2013.
The business community has been reacting generally negatively to the planned allocation of only €65 Million for capital investments of which €33 million will be spent on infrastructure projects.
The tax revenue is estimated to reach the levels of approximately €1.08 billion. This will largely be a result of the expected increase in VAT revenue collection. The government justifies this growth by the expected increase in exports and imports as well as the relative stabilisation of spending.
Jelena Zivkovic (firstname.lastname@example.org)
Eurofast Global, Podgorica Office, Montenegro
Tel: +382 20 228 490