Download Document

2. REVENUES1 COLLECTION AND PUBLIC CONSUMPTION ESTIMATES IN
MONTENEGRO FOR THE FIRST SIX MONTHS OF 2011
The public consumption for the first six months of 2011 was estimated in the amount of EUR 598,24
million or 18,74% of GDP, which is by 2,8% higher than the realization generated in the same period
of last year. Estimated public consumption amount, was financed from the direct taxes in the amount
of EUR 223,82 million, indirect taxes in the amount of EUR 273,19 million, and non – tax revenues
in the amount of EUR 51,39 million. In addition to the current revenues, the public consumption for
the first six months of 2011 was financed from borrowings and loans in the amount of EUR 4,3
million, privatization revenues and sales of assets in the amount of EUR 4,3 million and donations in
the amount of EUR 2,76. The use of deposits amounted to EUR 40,94 million or 1,28% of GDP.
Current public revenues were estimated at the amount of EUR 548,40 million or 17,18% of GDP
forecasted in 2011 (EUR 3.192,00 million). The most important items in the public revenues structure
represent the taxes – 10,7 % of GDP and contributions – 4,9% of GDP.
Current public consumption in the first six moths of 2011, amounted at EUR 562,23 million or 17,6%
of GDP. Pursuant to the economic classification and by individual items, the highest share in
expenditures have the Social Protection Transfers – EUR 224,54 million or 7,03% of GDP, mainly
due to the pensions expenditures, gross wages – EUR 173,95 million or 5,45% of GDP, Transfers to
Institutions, Individuals, NGO’s and Public Sector (transfers to the health institutions, University of
MNE) – EUR 48,36 million or 1,52 % of GDP, while the capital budget amounted at EUR 36,02
million or 1,13% of GDP.
Public sector cash deficit for the first six months of 2011, was estimated in the amount of EUR 49,84
million, or 1,56% of GDP forecasted for 2011. The deficit of the Budget of Montenegro amounted at
EUR 52,4 million, while the local government deficit was in a slight surplus.
mil €
Javna potrošnja
1
600,00
550,00
500,00
450,00
400,00
350,00
300,00
250,00
200,00
150,00
100,00
50,00
0,00
-50,00
-100,00
I-VI 2010
I-VI 2011
Tekući javni prihodi
Javna potrošnja
Suficit/ Deficit
The Ministry of Finance estimated the local government budget execution for the first quarter of
2011, based on the municipal budgets plan for 211 and data on budget execution for 2010.
The following Table is indicating the realization of the current public revenues and the public
consumption execution with the financing and the comparison with the same period of last year:
I – VI 2010
Public Consumption
mil €
%
GDP
I – VI 2011
mil €
% GDP
%
2011/2010
Current public revenues
Taxes
Personal income tax
Corporate profit tax
Real estate turnover tax
VAT
Excises Duties
International trade and transactions
taxes
Local taxes
Other revenues
Contributions
Pension and disability insurance
contributions
Health insurance contributions
Contributions from unemployment
Other contributions
Duties
Fees
Other revenues
Receipts from the repayment of loans
570,59
17,88
548,40
17,18
96,11
337,24
10,57
341,34
10,69
101,22
49,68
1,56
45,75
1,43
92,10
13,62
0,43
22,40
0,70
164,54
9,13
0,29
6,75
0,21
73,91
168,66
5,28
170,25
5,33
100,94
52,58
1,65
60,24
1,89
114,57
23,09
0,72
20,93
0,66
90,64
15,17
0,48
13,00
0,41
85,70
5,33
0,17
2,02
0,06
37,98
166,81
5,23
155,66
4,88
93,32
102,42
3,21
95,24
2,98
92,99
57,61
1,80
52,58
1,65
91,27
4,69
0,15
5,18
0,16
110,30
2,08
0,07
2,67
0,08
128,01
13,61
0,43
10,02
0,31
73,61
28,34
0,89
23,80
0,75
83,99
22,46
0,70
16,02
0,50
71,33
2,14
0,07
1,56
0,05
72,89
Public consumption
Current public consumption
Current expenditures
Gross wages and contributions
charged to employer
Other personal income
Expenditures for material and services
Current maintenance
Interest
Rent
Subsidies
Other expenditures
Social protection transfers
Transfers to public institutions,
NGO’s
Capital budget
Borrowings and loans
Reserves
Surplus / Deficit
Primary deficit
Debt repayment
582,21
18,24
598,24
18,74
102,75
531,54
16,65
562,23
17,61
105,77
237,42
7,44
279,45
8,75
117,70
132,17
4,14
173,95
5,45
131,61
7,78
0,24
10,80
0,34
138,83
45,29
1,42
48,79
1,53
107,74
11,99
0,38
9,71
0,30
80,97
15,56
0,49
20,75
0,65
133,32
3,50
0,11
3,72
0,12
106,06
18,67
0,58
8,82
0,28
47,22
2,46
0,08
2,92
0,09
118,72
200,42
6,28
224,54
7,03
112,04
85,73
2,69
48,36
1,52
56,41
50,67
1,59
36,02
1,13
71,09
2,25
0,07
2,58
0,08
114,74
5,71
0,18
7,28
0,23
127,53
-11,62
-0,36
-49,84
-1,56
3,94
0,12
-29,10
-0,91
126,89
3,98
113,32
3,55
89,31
Repayment of principal to residents
Repayment of principal to nonresidents
Repayment of liabilities from previous
years
Repayment of issued guarantees
Financing needs
Financing
Borrowings and loans from domestic
sources
Borrowings and loans from abroad
Donations
Privatization or deposits revenues
Increase/Decrease in deposits
30,42
0,95
10,29
0,32
33,84
22,28
0,70
30,11
0,94
135,14
74,19
2,32
46,61
1,46
62,83
0,00
0,00
26,30
0,00
0,00
-138,51
-4,34
-163,16
-5,11
138,51
4,34
163,16
5,11
20,93
0,66
15,00
0,47
71,67
4,39
0,14
182,01
5,70
4.142,37
1,69
0,05
2,76
0,09
163,39
7,87
0,25
4,33
0,14
54,97
103,63
3,25
-40,94
-1,28
-39,51
a) BUDGET OF MONTENEGRO
Receipts2 of the Budget of Montenegro for the first six months of 2011, amounted at EUR 691,7
million. Current revenues of the Budget amounted at EUR 498,1 million or 15,6 % of GDP. Revenues
collection of the Budget of MNE is bellow the plan by 2,9%, and down by 2,7% compared to the
same period of last year. The collection of tax revenues (taxes and contributions) was generated at the
amount of EUR 468,2 million, out of which the direct taxes collection amounted at EUR 214,2
million, while the indirect taxes collection amounted at EUR 254 million.
Tax based revenues amount at EUR 312,5 million, being below the plan by 4,2%. Excises collection
was below the plan by 9,8%, but the excises collection against six months of last year, is higher by
14,6%, due to the changes in the excises structure and different payment method.
VAT based revenues collection for the first six months is below the plan by 6%, while the
international trade and transaction taxes are bellow the plan by 9,5%. Corporate profit tax collection is
above the plan by 13,5%, as a result of the corporate profit tax collection in April, made pursuant to
the latest amendments to Law on Corporate Profit Tax adopted at the end of 2009, envisaging the
abolishment of prepaid collection and payment of the corporate profit tax declared in total amounts
with the Tax Administration, at latest within three months following the expiration of the fiscal year.
In the forthcoming months, we may expect the collection of this type of taxes only on the basis of the
tax debt which is in accordance with the Decree on deferred payment of the corporate profit tax in six
monthly installments.
VAT based revenues for the first six months was generated slightly bellow the plan, due to the high
real sector illiquidity and the increasing tax debt.
Contribution based revenues amount at EUR 155,66 million, which is by 3,8 % above the plan, due to
the payment of wages contributions for July from the Budget.
Receipts include current revenues (direct and indirect taxes and non – tax revenues), borrowings.
Donations and revenues from privatization and sales of assets.
2
Izvorni prihodi
250,00
mil €
200,00
Plan Jan-Jun 2011
Ostvarenje Jan - Jun 2011
Ostvarenje Jan - Jun 2010
150,00
100,00
50,00
0,00
Porez na
zarade
Porez na
dobit
Porez na
dodatu
vrijednost
Akcize
Carine
Doprinosi za Doprinosi za
PIO
zdravstveno
osig.
Neporeski
prihodi
The following Table indicates the budgetary revenues collection and budgetary consumption
execution, in EUR million and % of GDP, compared to the plan for the same period of the last year:
Budget of Montenegro
Current revenues
Taxes
Personal income tax
Corporate profit tax
Real estate turnover tax
VAT
Excises Duties
International trade and transactions
taxes
Other taxes
Contributions
Pension and disability insurance
contributions
Health insurance contributions
Contributions from unemployment
Other contributions
Duties
Fees
Other revenues
Receipts from the repayment of
loans
Expenditures
Current budgetary consumption
Current expenditures
Gross wages and contributions
charged to employer
Other personal income
Expenditures for material and services
I – VI 2010
% of
mill €
GDP
I – VI 2011
% of
mill €
GDP
% of
Execution
511,64
16,03
498,09
15,60
97,35
305,27
9,56
312,54
9,79
102,38
39,43
1,24
36,14
1,13
91,67
13,62
0,43
22,40
0,70
164,54
2,58
0,08
0,55
0,02
21,16
168,66
5,28
170,25
5,33
100,94
52,58
1,65
60,24
1,89
114,57
23,09
0,72
20,93
0,66
90,64
5,33
0,17
2,02
0,06
37,98
166,81
5,23
155,66
4,88
93,32
102,42
3,21
95,24
2,98
92,99
57,61
1,80
52,58
1,65
91,27
4,69
0,15
5,18
0,16
110,30
2,08
0,07
2,67
0,08
128,01
10,64
0,33
7,52
0,24
70,66
12,23
0,38
10,80
0,34
88,34
14,56
0,46
10,02
0,31
68,82
2,14
0,07
1,56
0,05
72,89
523,11
16,39
550,51
17,25
105,24
496,37
15,55
530,49
16,62
106,87
214,53
6,72
260,15
8,15
121,26
120,57
3,78
166,45
5,21
138,05
5,67
0,18
6,30
0,20
111,14
39,15
1,23
44,79
1,40
114,42
Current maintenance
Interest
Rent
Subsidies
Other expenditures
Social protection transfers
Social protection rights
Severance pay
Pension and disability insurance rights
Other health protection rights
Other health insurance rights
Transfers to public institutions,
individuals and NGO’s
Capital budget
Borrowings and loans
Reserves
Surplus / Deficit
Primary deficit
Debt repayment
Repayment of principal to residents
Repayment of principal to
nonresidents
Repayment of liabilities from previous
years
Repayment of guarantees
Financing needs
Financing
Borrowings and loans from domestic
sources
Borrowings and loans from abroad
Donations
Privatization revenues or deposits
Increase/decrease in deposits
10,36
0,32
8,51
0,27
82,13
15,08
0,47
19,75
0,62
130,93
3,22
0,10
3,62
0,11
112,17
18,37
0,58
8,32
0,26
45,27
2,11
0,07
2,42
0,08
114,71
200,28
6,27
224,34
7,03
112,01
24,99
0,78
28,79
0,90
115,20
8,19
0,26
9,22
0,29
112,55
158,93
4,98
177,51
5,56
111,69
4,98
0,16
5,61
0,18
112,60
3,19
0,10
3,22
0,10
100,87
75,06
2,35
38,45
1,20
51,22
26,74
0,84
20,02
0,63
74,87
2,20
0,07
1,46
0,05
66,44
4,29
0,13
6,08
0,19
141,76
-11,47
-0,36
-52,42
-1,64
3,61
0,11
-32,67
-1,02
107,42
3,37
94,82
2,97
88,27
29,42
0,92
9,29
0,29
31,59
20,44
0,64
28,11
0,88
137,52
57,56
1,80
31,11
0,97
54,06
0,00
0,00
26,30
0,82
0,00
-118,89
-3,72
-147,23
-4,61
118,89
3,72
147,23
4,61
16,57
0,52
8,00
0,25
0,00
4,39
0,14
182,01
5,70
4.142,37
0,62
0,02
1,76
0,06
284,42
2,31
0,07
1,83
0,06
79,03
94,99
2,98
-46,36
-1,45
-48,81
Budgetary expenditures for the first six months of 2011, amounted at EUR 550,5 million or 17,5% of
GDP. Current budgetary consumption amounted at EUR 530,5 million or 16,6 % of GDP, while the
capital budget amounted at EUR 20 million or 0.63 % of GDP. Budgetary expenditures for the first
six months of 2011, against the budget execution in first half of 2010, are higher by 5,25%. Reasons
behind the increase in expenditures, to the greatest extent relate to the increase in social protection and
pension expenditures, as well as to the increase in the number of pensioners and extraordinary
alignment of military pensions. This trend in the social protection transfers may be expected to
continue even in the second half of the year. Simultaneously, internal cost – saving measures continue
to apply aimed at mitigating the negative trend increase of the certain categories of expenditures.
Budžetska potrošnja I - VI 2011. godine
224,34
260,15
O
38,45
7,54
20,02
Tekući izdaci
Transferi za socijalnu zaštitu
Transferi institucijama, pojedincima i NVO sektoru
Kapitalni budžet
Ostali izdaci
The deficit of the Budget of Montenegro amount to EUR 52,4 million or 1,64% of GDP, while the use
of the state deposits amounted at EUR 46,36 million or 1,45% of GDP.
Envisaged borrowing by the budget for 2011 is in the amount of EUR 150 million, privatization
revenues in the amount of EUR 15 million and the use of deposits in the amount of EUR 64,9 million.
However, Eurobonds were issued in the amount of EUR 180 million, which is by EUR 30 million
above the plan, while at the same time the privatization revenues are of low and its realization is
questionable by the end of the year.
At the end of 2010, the available effective deposits amounted at EUR 102 million. It was assumed that
the state deposits level at the end of 2011 will retain to the minimum level up to EUR 60 million,
which would mean the use of deposits in this year of EUR 42 million. In this case, borrowings and
loans from abroad would amount to of around EUR 235 million, which is by EUR 85 million above
the amount prescribed by the Budget Law of MNE for 2011, or EUR 55 million above Eurobonds
proceeds.
b) Local Government
Pursuant to Article 74 of the Law on Local Government Financing, municipalities are submitting
reports on the planned and generated revenues and expenditures and budget indebtedness to the
Ministry of Finance on a quarterly basis, within 30 days following the expiry of a quarter. Concerning
the fact that a number of Municipalities did not submit Reports for the second quarter of 2011, the
Ministry of Finance, pursuant to the Report on local government budget execution for 2010 and the
Report on municipal budgets execution in the first quarter of 2011, has made the estimates of
generated revenues and expenditures execution for the second quarter of 2011.
Estimated local government expenditures for the first two quarters of 2011, amount at EUR 47,82
million or 1,5 % of GDP, which is below the realization in the same period of last year.
I-VI 2010
Local Government
mil €
I-VI 2011
% of
GDP
mil €
% of
GDP
%
Realization
Current revenues
58,95
1,85
50,31
1,58
85,34
Taxes
Personal income tax
Real estate turnover tax
Local taxes
31,97
1,00
28,81
0,90
90,11
10,25
0,32
9,61
0,30
93,74
6,55
0,21
6,20
0,19
94,66
15,17
0,48
13,00
0,41
85,70
Duties
Fees
Other revenues
2,97
0,09
2,50
0,08
84,18
16,11
0,50
13,00
0,41
80,70
7,90
0,25
6,00
0,19
75,95
Expenditures
59,33
1,86
47,82
1,50
80,60
Current local government expenditures
35,40
1,11
31,82
1,00
89,89
Current expenditures
Gross wages and contributions charged to
employer
Other personal income
Expenditures for material and services
Current maintenance
Interest
Rent
Subsidies
Other expenditures
Social protection transfers
Transfers to public institutions,
individuals and NGO’s
Local government capital budget
Borrowings and loans
22,89
0,72
19,30
0,60
84,32
11,60
0,36
7,50
0,23
64,66
2,11
0,07
4,50
0,14
213,27
6,14
0,19
4,00
0,13
65,15
1,63
0,05
1,20
0,04
73,62
0,48
0,02
1,00
0,03
208,33
0,28
0,01
0,10
0,00
35,71
0,30
0,01
0,50
0,02
166,67
0,35
0,01
0,50
0,02
142,86
0,14
0,00
0,20
0,01
142,86
10,90
0,34
10,00
0,31
91,74
23,93
0,75
16,00
0,50
66,86
0,05
0,00
1,12
0,04
2.240,00
1,42
0,04
1,20
0,04
84,51
-0,15
0,00
2,57
0,08
0,33
0,01
3,57
0,11
19,47
0,61
18,50
0,58
95,02
1,00
0,03
1,00
0,03
100,00
1,84
0,06
2,00
0,06
108,70
16,63
0,52
15,50
0,49
93,21
-19,62
-0,61
-15,93
-0,50
81,17
19,39
0,61
15,84
0,50
81,68
4,36
0,14
7,00
0,22
160,55
1,07
0,03
1,00
0,03
93,46
5,56
0,17
2,50
0,08
44,96
8,40
0,26
5,34
0,17
63,55
0,23
0,01
0,09
0,00
37,76
Reserves
Surplus / Deficit
Primary deficit
Debt repayment
Repayment of principal to residents
Repayment of principal to nonresidents
Repayment of liabilities from previous
period
Financing needs
Financing
Borrowings and loans from domestic
sources
Donations
Privatization revenues
Increase/Decrease in deposits
Transfers from the Budget
Prihodi lokalne sam ouprave
35,00
30,00
Ostvarenje I -VI 2011
Ostvarenje I -VI 2010
mil €
25,00
20,00
15,00
10,00
5,00
0,00
Porezi
Takse
Nakna
Ostali
The consumption was financed from taxes in the amount at EUR 12.28 million, duties EUR 0.75
million, fees EUR 5.67 million and other current revenues in the amount of EUR 1.90 million. The
total current revenues of the local government for the first quarter of 2011, were estimated in the
amount of EUR 20.60 million or 0.65 % of GDP, which is below the planned amount for the same
period.
Izdaci lokalne sam ouprave u prvom kvartalu 2011. godine
0.60
5.82
10.54
4.50
Tekući izdaci
Transferi institucijama, pojedincima i NVO sektoru
Kapitalni budzet lokalne samouprave
Ostali i zdaci
Local government deficit in the first quarter of 2011, was estimated in the amount of EUR 0.86
million or 0.03% of GDP. Estimated deficit was financed from the sale of assets, donations, use of
borrowings and loans from the domestic sources and the use of the deposits of municipalities.
Prihodi lokalne samouprave
20,00
18,00
Plan I Q 2011
16,00
Ostvarenje I Q 2011
14,00
Ostvarenje I Q 2010
mil €
12,00
10,00
8,00
6,00
4,00
2,00
0,00
Porezi
Takse
Naknade
Ostali prihodi
Consumption was financed from taxes in the amount of EUR 28,81 million, duties in teh amount of
EUR 2,5 million, fees in the amount of EUR 13 million and other current revenues in the amount of
EUR 6 million. The total current revenues of the local governemnt for the first six months of 2011,
were estimated at the amount of EUR 50,31 million or 1,58 % of GDP.
Ms. Iva Radovanović, Independent Advisor II,
Stanko Jeknić, Independent Advisor I,
Radovan Živković, Independent Advisor I,
Mr. Vladislav Karadžić, Independent Advisor I,
Sector for Economic Policy and Developemnt,
Ms. Snežana Mugoša, Independent Advisor I,
Budget Sector