Montenegro State Budget 2026: 3.78 Billion Euros, a Deficit of 3.25% of GDP, Where the Money Comes From, What It Is Spent On and How the Budget Stands in July

Montenegro's budget for 2026 is 3.78 billion euros. The state plans 3.08 billion euros of receipts and 3.36 billion euros of spending, so the deficit is projected at 278.34 million euros, or 3.25% of GDP. The largest source of revenue is VAT, 1.47 billion euros, and 305 million euros are planned for capital projects. From January to July 2026 revenue was 1,717.0 million euros, 8.7% more than a year earlier, and the deficit 143.8 million euros, or 1.7% of GDP.

This guide explains how large the budget is, where the money comes from, what it is spent on and how the budget is being executed in 2026.

How large is the 2026 budget?

• The budget of the funds covers funds such as the Pension and Disability Insurance Fund and the Health Insurance Fund.
• Financing transactions are used to repay debt and obligations from previous periods and to buy securities.
• The budget assumes GDP of 8.56 billion euros, real growth of 3.2%, inflation of 2.9% and wage growth of 4%.

Where does the money come from?

• Taxes bring in 2.35 billion euros or 76% of receipts, contributions 455.97 million euros or 15%, and fees, charges, donations and other revenue 271.80 million euros or 9%.
• VAT is the largest tax, with 1.47 billion euros or 62.56% of tax revenue.
• The state covers the missing money with borrowing, donations and the use of deposits.

What is the money spent on?

• 727.07 million euros are planned for gross wages of public sector employees, and 590.54 million euros for net wages.
• Most spending goes to pensions, social protection, wages and interest on debt.
• 348.1 million euros are planned for capital spending such as roads, buildings and equipment, and the capital budget is 305 million euros.

How is the budget executed up to July?

• The budget deficit from January to July was 143.8 million euros, or 1.7% of GDP, and was 97.8 million euros lower than planned.
• Excise duties on tobacco brought in 14.0 million euros more than a year earlier, and excise duties on fuel 7.9 million euros less, because of the temporary cut in fuel excise in part of 2026.
• Spending was 69.4 million euros below plan, and 416.0 million euros were paid for gross wages and contributions.
• In July alone revenue was 279.5 million euros and spending 309.3 million euros.

The size of the public debt is explained in our guide to public debt, and the size of GDP in our guide to Montenegro's GDP. How tax and contributions on wages are paid is covered in our guide to salary tax, and fuel prices and excise duties in our guide to fuel prices.

Frequently asked questions

How large is Montenegro's budget for 2026? The 2026 budget is 3.78 billion euros, with 3.08 billion euros of receipts and 3.36 billion euros of spending.

What is the planned deficit for 2026? The planned deficit is 278.34 million euros, or 3.25% of GDP.

Which tax brings in the most money? VAT, with a planned 1.47 billion euros, or 62.56% of tax revenue.

How much goes to public sector wages? 727.07 million euros are planned for gross wages, and 590.54 million euros for net wages.

How is the budget being executed in 2026? From January to July revenue was 1,717.0 million euros and the deficit 143.8 million euros, less than planned.

How much is planned for capital projects? The capital budget for 2026 is 305 million euros.

Sources

The structure of the budget, receipts, spending, the deficit and the macroeconomic assumptions are explained in the Guide to Montenegro's 2026 budget of the Parliamentary Budget Office, and revenue, spending and the deficit from January to July are published by the Ministry of Finance in its budget execution report for July 2026. The information was checked on 29 September 2026. Fijaka is a classifieds platform; this text is not financial advice.