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CURRENT REVENUES1 ESTIMATES AND THE ANALYSIS OF GENERATED PUBLIC
SPENDING IN MONTENEGRO FOR 2010
General Government Consumption2 in 2010 is estimated at the amount of EUR 1.401,62
million or 46,33% of GDP, which is by EUR 120 million less than in 2009. Estimated public
spending amount was financed by taxes in the amount of EUR 755,09 million, contributions
EUR 379,76 million, duties EUR 26,78 million, fees EUR 99,65 million, other current revenues
in the amount of EUR 45,12 million and receipts from the repayment of loans in the amount
of EUR 3,62 million. In addition to the current revenues, the public spending in 2010 was
also financed by borrowings and loans in the amount of EUR 243,88 million, donations in the
amount of EUR 2,76 million and privatization revenues and sales of property in the amount
of EUR 25,39 million. The use of deposits in 2010, amounted at EUR 78,44 million or 2,59 %
of GDP.
Public current revenues were estimated at the amount of EUR 1.310,01 million or 43,31% of
GDP forecasted for 2010 (EUR 3.025,00 million). The most important items in the public
revenues structure represent the taxes – 24,96 % of GDP and contributions - 12,55% of
GDP. Compared to the plan, collection of current public revenues was 97,69%. It is
important mentioning that the current revenues structure in 2010 has changed compared to
previous years. Namely, the increase in direct taxes in the total tax revenues is evident,
levering the reduction in indirect taxes (45,4% : 54,6% ratio in favor of indirect ones)3.
Current public consumption for 2010, amounted at EUR 1.238,09 million or 40,93% of GDP.
Compared to the plan, the public spending was executed at 99,25%. Pursuant to the
economic classification and by individual items, the highest share in expenditures have the
Social Protection Transfers – EUR 423,93 million or 14% of GDP, Gross Wages – EUR 317,37
million or 10,49% of GDP, Transfers to Institutions, Individuals, NGO’s and Public Sector –
EUR 203,44 million or 6,73 % of GDP, while the capital budget amounted at EUR 163,54
million or 5,41% BDP-a.
Public sector cash deficit4 for 2010, has been planned in the amount of EUR 139,90 million,
and it was estimated at EUR 91,6 million, representing 3,03 % of forecasted GDP for 2010.
The deficit of the Budget of Montenegro was estimated in the amount of EUR 84,57 million,
while the Local government budget was estimated in the amount of EUR 7,04 million.
Budget deficit was financed from Eurobond proceeds while municipal deficit was mainly
financed out of deposits.
General Governm ent Consum ption in 2010
1400,00
1200,00
Plan 2010
mil €
1000,00
Execution 2010
800,00
600,00
400,00
200,00
0,00
-200,00
1
Current Public Revenues
Consolidated Public Consumption
Surplus/deficit
The Ministry of Finance is required to submit the Draft Final Account for 2010, to the Government by 1st June 2011,
containing the final data.
2
The Ministry of Finance has assessed the execution of local governments budget in 2010, on the basis of the budgetary plans
of municipalities for 2010, and on the basis of the data on execution of municipalities for the first nine months of 2010.
3
This ratio in 2009 amounted to 43,8:56,2 in favor of public revenues.
4 The Organic Budget Law, Article 16 is defining the cash deficit or surplus representing the difference between the receipts
and expenditures, whereas the receipts are being reduced by borrowings, received transfers, donations and receipts from the
sales of real estate, and expenditures for the repayment of principal in the country and abroad, pursuant to the debt generated
from obtaining a loan or issuing securities and change in the net liabilities generated in previous years not implying the
borrowing characteristics. Change in net liabilities generated in previous years has been indicated as a difference in liabilities at
the beginning and at the end of the fiscal period. In the light of the above, the cash – deficit should encompass outstanding
liabilities. The amount of outstanding liabilities will be determined by 15 th February 2011. However, pursuant to the preliminary
data, the forecasted deficit will be bellow 4% of GDP.
The Table bellow5 is indicating the execution and the plan of both the current public
revenues and public consumption with financing for 2010, in million EUR and % of GDP:
Plan 2010
Public expenditure
Current public revenues
mil €
Execution 2010
% of
GDP
mill €
% of GDP
% of Execution
1341,02
44,33
1310,01
43,31
Taxes
820,47
27,12
755,09
24,96
92,03
Personal income tax
105,86
3,50
115,07
3,80
108,70
Corporate profit tax
49,58
1,64
20,27
0,67
40,88
Real estate turnover tax
18,83
0,62
16,46
0,54
87,44
VAT
398,86
13,19
364,18
12,04
91,31
Excises Duties
149,89
4,96
134,26
4,44
89,57
International trade and transactions taxes
48,87
1,62
50,81
1,68
103,98
Local taxes
38,79
1,28
42,45
1,40
109,43
9,79
0,32
11,59
0,38
118,30
Contributions
323,93
10,71
379,76
12,55
117,24
Pension and disability insurance contributions
198,64
6,57
233,50
7,72
117,55
Health insurance contributions
115,23
3,81
129,90
4,29
112,73
10,06
0,33
10,15
0,34
100,88
0,00
0,00
6,22
0,21
0,00
30,11
1,00
26,78
0,89
88,96
110,02
3,64
99,65
3,29
90,58
49,65
1,64
45,12
1,49
90,88
Other revenues
Contributions from unemployment
Other contributions
Duties
Fees
Other revenues
Receipts from the repayment of loans
97,69
6,84
0,23
3,62
0,12
52,84
Public expenditure
1480,92
48,96
1401,62
46,33
94,65
Current public expenditure
1247,46
41,24
1238,09
40,93
99,25
Current expenditures
Gross wages and contributions charged to
employer
Other personal income
625,22
20,67
589,56
19,49
94,30
314,66
10,40
317,37
10,49
100,86
30,58
1,01
24,50
0,81
80,11
Expenditures for material and services
151,09
4,99
130,56
4,32
86,41
Current maintenance
33,43
1,11
31,43
1,04
94,02
Interest
33,10
1,09
31,20
1,03
94,24
9,96
0,33
8,69
0,29
87,17
45,08
1,49
39,73
1,31
88,12
7,31
0,24
6,10
0,20
83,49
Social protection transfers
407,19
13,46
423,93
14,01
104,11
Transfers to public institutions, NGO’s
198,53
6,56
203,44
6,73
102,47
Capital budget
233,46
7,72
163,54
5,41
70,05
Capital expenditures of the current budget and
state funds
Capital budget of MNE
21,24
121,00
0,64
91,32
2,09
52,27
Rent
Subsidies
Other expenditures
Local government capital budget
0,70
4,00
2,67
88,68
0,15
80,89
4,94
0,16
110,13
12,02
0,40
16,22
0,54
134,92
Surplus / Deficit
-139,90
-4,62
-91,61
-3,03
Primary deficit
-106,80
-3,53
-60,42
-2,00
Borrowings and loans
91,22
4,49
Reserves
Debt repayment
3,02
19,40
63,25
152,86
5,05
258,86
8,56
169,34
Repayment of principal to residents
22,84
0,76
62,29
2,06
272,67
Repayment of principal to nonresidents
43,34
1,43
45,34
1,50
104,61
174,48
Repayment of liabilities from previous years
86,67
2,87
151,23
5,00
-292,76
-9,68
-350,47
-11,59
292,76
9,68
350,47
11,59
8,29
0,27
38,43
1,27
463,56
100,00
3,31
205,45
6,79
205,45
Donations
21,77
0,72
2,76
0,09
12,70
Privatization revenues
73,22
2,42
25,39
0,84
34,68
Use of state deposits
89,49
2,96
78,44
2,59
87,65
Financing needs
Financing
Borrowings and loans from domestic sources
Borrowings and loans from abroad
5
The aforementioned table indicates forecasted execution of current revenues and public spending. The final data will be
published in the Final Account for 2010.
The Consolidated public expenditure (public spending reduced by contributions charged to
employer and communal fees) was estimated at the amount of EUR 1.361,58 million or
45,01% of GDP, while compared to 2009, the public spending after the consolidation is less
by 4,83 % of GDP.
Plan 2010
Public expenditure
Current public revenues
mil €
Execution 2010
% of
GDP
mill €
% BDP
% of Execution
mil €
1297,21
42,88
1269,96
41,98
97,90
Taxes
820,47
27,12
755,09
24,96
92,03
Personal income tax
105,86
3,50
115,07
3,80
108,70
Corporate profit tax
49,58
1,64
20,27
0,67
40,88
Real estate turnover tax
18,83
0,62
16,46
0,54
87,44
VAT
398,86
13,19
364,18
12,04
91,31
Excises Duties
149,89
4,96
134,26
4,44
89,57
International trade and transactions taxes
48,87
1,62
50,81
1,68
103,98
Local taxes
38,79
1,28
42,45
1,40
109,43
9,79
0,32
11,59
0,38
118,30
Contributions
283,72
9,38
343,31
11,35
121,00
Pension and disability insurance contributions
173,91
5,75
211,09
6,98
121,37
Health insurance contributions
Other revenues
101,48
3,35
117,43
3,88
115,72
Contributions from unemployment
8,33
0,28
9,18
0,30
110,17
Other contributions
0,00
0,00
5,62
0,19
0,00
30,11
1,00
26,78
0,89
88,96
106,42
3,52
96,05
3,18
90,26
49,65
1,64
45,12
1,49
90,88
6,84
0,23
3,62
0,12
52,84
Consolidated public expenditure
1437,11
47,51
1361,58
45,01
94,74
Current public expenditure
1203,65
39,79
1198,04
39,60
99,53
Current expenditures
Gross wages and contributions charged to
employer
Other personal income
581,41
19,22
549,51
18,17
94,51
274,46
9,07
280,92
9,29
102,36
30,58
1,01
24,50
0,81
80,11
Expenditures for material and services
151,09
4,99
130,56
4,32
86,41
Current maintenance
33,43
1,11
31,43
1,04
94,02
Interest
33,10
1,09
31,20
1,03
94,24
Duties
Fees
Other revenues
Receipts from the repayment of loans
Rent
9,96
0,33
8,69
0,29
87,17
45,08
1,49
39,73
1,31
88,12
3,71
0,12
2,50
0,08
67,47
Social protection transfers
407,19
13,46
423,93
14,01
104,11
Transfers to public institutions, NGO’s
198,53
6,56
203,44
6,73
102,47
Capital budget
233,46
7,72
163,54
5,41
70,05
Capital expenditures of the current budget and
state funds
Capital budget of MNE
21,24
121,00
0,64
91,32
2,09
52,27
Subsidies
Other expenditures
Local government capital budget
0,70
4,00
2,67
88,68
0,15
80,89
4,94
0,16
110,13
12,02
0,40
16,22
0,54
134,92
Surplus / Deficit
-139,90
-4,62
-91,61
-3,03
Primary deficit
-106,80
-3,53
-60,42
-2,00
152,86
5,05
258,86
8,56
169,34
Repayment of principal to residents
22,84
0,76
62,29
2,06
272,67
Repayment of principal to nonresidents
43,34
1,43
45,34
1,50
104,61
Repayment of liabilities from previous years
86,67
2,87
151,23
5,00
174,48
-292,76
-9,68
-350,47
-11,59
292,76
9,68
350,47
11,59
8,29
0,27
38,43
1,27
463,56
100,00
3,31
205,45
6,79
205,45
Donations
21,77
0,72
2,76
0,09
12,70
Privatization revenues
73,22
2,42
25,39
0,84
34,68
Use of state deposits
89,49
2,96
78,44
2,59
87,65
Borrowings and loans
91,22
4,49
Reserves
Debt repayment
Financing needs
Financing
Borrowings and loans from domestic sources
Borrowings and loans from abroad
3,02
19,40
63,25
Public expenditure in Montenegro is comprised of central government expenditure including
state funds and municipal expenditures.
BUDGET OF MONTENEGRO
Budget receipts for 2010 were estimated6 at EUR 1.369,16 million. Current revenues of the
Budget for 2010, amount at EUR 1.138,62 million or 37,64 % of GDP, while the Execution
against the plan is at 97,75 %.
Current revenue January - Decem bar 2010
140,00
120,00
mil €
100,00
80,00
60,00
Current Revenue - Execution
40,00
Current Revenue - Plan
20,00
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Tax revenues amount at EUR 675,80 million, being lower by 9,44 % against the planned
ones. The lower collection of the corporate profit tax was generated due to lower profits of
the legal entities in 2009, and due to the amendments to the legislation related to the
abolition of the corporate profit tax prepayment.
Lower collection of excises duties was generated due to decreased oil products sales,
subsequently recording a slight recovery. At the end of 2010, the collection of excises duties
was generated by 10% below the plan, which is still above collected amount in 2009.
VAT based revenues collection for the first eight months were collected pursuant to the
plan, while in the last quarter of the fiscal year, it was subjected to the decrease in
collection by 8,7%, i.e., EUR 34 million indicated in absolute amount. This strong deviation
was partly a result of the increase in the tax debt by EUR 13 million, whereas at the end of
2010, uncollected VAT debt of the Tax Administration in the amount of EUR 26 million.
Furthermore, in planning this type of revenues for 2010, among other things, this type of
collected revenues in previous years is being accounted for. Considering the fact that in the
second half of 2009, the revenues have significantly increased due to the partly privatization
of EPCG, when developing the VAT collection plan for 2010, the influence of the partly
privatization of EPCG was not appropriately neutralized, hence resulting in higher revenues
plan.
Current Revenues
400,00
Execution January - December 2010
350,00
Execution January - December 2009
300,00
mil €
250,00
200,00
150,00
100,00
50,00
0,00
Personal Income
Tax on Profits of
Tax
Legal Persons
Value Added Tax
Excises
Tax on
Contributions for
Contributions for
International Trade
Pension and
Health Insurance
and Transactions
Neporeski prihodi
Disability
Insurance
6
Final revenues execution can slightly deviate from the revenues evaluation for 2010. Budget receipts include
apart from current revenues (taxes, contributions, excise etc) privatization receipts, credit proceeds, grants
Plan 2010
Budget of Montenegro
Current 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
mill €
Execution 2010
% of
GDP
mill €
% of GDP
% of Execution
1164,89
38,51
1138,62
37,64
97,75
746,27
83,63
49,58
5,65
398,86
149,89
48,87
9,79
323,93
198,64
115,23
10,06
0,00
22,04
32,45
33,36
24,67
2,76
1,64
0,19
13,19
4,96
1,62
0,32
10,71
6,57
3,81
0,33
0,00
0,73
1,07
1,10
675,80
89,75
20,27
4,94
364,18
134,26
50,81
11,59
379,76
233,50
129,90
10,15
6,22
20,54
27,43
31,48
22,34
2,97
0,67
0,16
12,04
4,44
1,68
0,38
12,55
7,72
4,29
0,34
0,21
0,68
0,91
1,04
90,56
107,32
40,88
87,44
91,31
89,57
103,98
118,30
117,24
117,55
112,73
100,88
0,00
93,20
84,54
94,36
6,84
0,23
3,62
0,12
52,84
Expenditures
1298,10
42,91
1223,20
40,44
94,23
Current budget expenditure
1177,11
38,91
1159,95
38,35
98,54
561,47
18,56
526,08
17,39
93,70
Transfers to public institutions, NGO’s
279,35
25,48
135,45
28,94
32,14
9,43
44,07
6,61
21,24
406,86
43,53
20,96
321,00
14,06
7,32
173,78
9,23
0,84
4,48
0,96
1,06
0,31
1,46
0,22
0,70
13,45
1,44
0,69
10,61
0,46
0,24
5,74
283,67
18,84
112,90
28,02
30,16
8,24
39,04
5,23
19,40
423,17
51,59
20,07
330,99
12,64
7,87
174,64
9,38
0,62
3,73
0,93
1,00
0,27
1,29
0,17
0,64
13,99
1,71
0,66
10,94
0,42
0,26
5,77
101,55
73,92
83,35
96,82
93,83
87,34
88,58
79,17
91,32
104,01
118,52
95,78
103,11
89,92
107,54
100,50
Capital budget
121,00
4,00
63,25
2,09
52,27
4,26
9,50
0,14
0,31
4,07
12,59
0,13
0,42
95,74
132,53
Surplus / Deficit
-133,22
-4,40
-84,57
-2,80
Primary deficit
-101,08
-3,34
-54,42
-1,80
127,86
4,23
215,82
7,13
168,79
17,84
43,34
66,68
0,59
1,43
2,20
56,82
45,34
113,66
1,88
1,50
3,76
318,42
104,61
170,46
-261,08
-8,63
-300,39
-9,93
Financing
261,08
8,63
300,39
9,93
Borrowings and loans from domestic sources
0,00
100,00
19,19
59,00
82,89
0,00
3,31
0,63
1,95
2,74
19,99
205,45
1,38
3,72
69,85
0,66
6,79
0,05
0,12
2,31
Current expenditures
Gross wages and contributions charged to
employer
Other personal income
Expenditures for material and services
Current maintenance
Interest
Rent
Subsidies
Other expenditures
Capital expenditures in the capital budget
Social protection transfers
Social protection rights
Severance pay
Pension and disability insurance rights
Other health protection rights
Other health insurance rights
Borrowings and loans
Reserves
Debt repayment
Repayment of principal to residents
Repayment of principal to nonresidents
Repayment of liabilities from previous years
Financing needs
Borrowings and loans from abroad
Donations
Privatization revenues
Use of state deposits
0,00
205,45
7,21
6,30
84,27
Contribution based revenues amount at EUR 379,76 million, which is by 17,24 % higher
than planned in 2010. The collection of contributions during the entire year, has evidently
surpassed the plan, due to the introduction of other personal income taxation (hot meal and
annual holiday allowances). However, increased taxes and contributions collection has
resulted in the lower private sector spending, or lower indirect taxes.
Compared with collected revenues in 2009, current budgetary revenues for 2010, are lower
by 2,62%. We are emphasizing that in 2009, revenues in the amount of EUR 44 million were
collected based on the loan repayment of Prva banka and if we exclude these temporary
type revenues, collected revenues in 2010 are by 1,9% above collected ones in 2009.
The following Table indicates the comparison of current revenues for the period 2009&2010,
with the following structure:
Final Account 2009
Budget of MNE
mill €
% of
GDP
Current revenues
1125,27
Tax revenues
Execution 2010
%
share
%
share
%
2010/2009
mill €
% of
GDP
37,75 100,00
1138,62
37,64 100,00
1,19
1019,98
34,22
90,64
1055,56
34,89
92,70
3,49
Direct taxes
457,27
15,34
40,64
489,78
16,19
43,02
7,11
Indirect taxes
562,71
18,88
50,01
565,78
18,70
49,69
0,54
Non-tax revenues
105,28
3,53
9,36
83,07
2,79
7,30
-21,10
Pursuant to this Table, it can be concluded that the share of tax revenues in the total
revenues of the Budget has increased, as well as the share of direct taxes in the total tax
revenues. Direct taxes in 2010 are higher by 7,1% against the previous year. The reason
behind this increase is significantly increased collection of compulsory insurance taxes.
Indirect taxes are slightly higher against 2009.
The following Graph provides the comparative monthly distribution of current revenues in
previous two years, indicated in million €:
Current revenue January - Decem bar 2009 & 2010
140,00
120,00
mil €
100,00
80,00
60,00
Current Revenue - Execution
40,00
Current Revenues 2009- excluding Prva banka
20,00
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It is evident that the monthly collection in the period 2009&2010 is almost the same in the
first quarter and at the end of the year. Due to improved tourist summer season, revenues
are higher in summer months, while significantly higher collection of revenues is collected in
the period September - October 2009, as a consequence of increase in aggregate demand
and partly privatization of EPCG.
Budgetary expenditures in 2010, were estimated at EUR 1.223,20 million or 40,44% of GDP,
being collected by 94,23% against the plan. Current budgetary spending amounts at EUR
1.159,95 million or 38,35 % of GDP, while capital budget amounts at EUR 63,25 million or
2,09 % of GDP.
The highest deviation of expenditures from the plan. i.e., above planned expenditures, has
been recorded with the gross wages expenditures, social protection rights, pension and
disability insurance rights and capital budget.
Gross wages expenditures are by 1,5 % above the plan, as a consequence of introducing
taxation of other personal income in 2010, taxes and contributions on other personal income
were paid off from the gross wages item. Therefore, the execution on the item covering
other personal income is bellow the plan, since only a net personal income amount has been
paid off from this position.
Budget Expenditures in 2010
in m ill €
423,17
493,94
16,66
Current outflow s
Transfers in public institutions, NGO
63,25
174,64
Social security transfers
Capital budget
Other expenditures
Capital budget execution is lower due to the two reasons, first is the postponing of the
construction of the highway Bar-Boljare, the amount of EUR 25 million has not been spent
representing the annual participation in financing of the state (co-financing). The second
reason is the absence of disbursement of certain funds on the basis of loans and donations
being planned as a source of financing of a part of the capital budget (donations EUR 8,3
million and loan EUR 14,47 million).
Lower generation of expenditures for material and services was a result of cost – saving
measures being implemented by the Ministry of Finance (lower monthly spending plans), as
well as public procurement control process, and planned but non – disbursed funds on the
basis of loans and donations of almost EUR 18 million.
In 2010, budgeted expenditures for the pension and disability insurance rights have
increased due to the regular alignment of pensions, being significantly higher than the
planned one at the beginning of 2010. Namely, pensions alignment, pursuant to the
previous Law on Pension and Disability Insurance, has been made twice a year pursuant to
the so – called “Swiss Formula” relying on inflation and wages increase in economy. When
planning the budget for 2010, it has been estimated that the inflation is low not requiring
wages increase in 2010, thus requiring slight alignment. However, following the introduction
of other personal income taxation, MONSTAT pursuant to its methodology has incorporated
them into the gross wages, which resulted in the statistical increase in wages by around
10%. In the light of the above, the Swiss Formula application has resulted the increase in
pensions by 5,5%. Furthermore, the expenditures for social protection rights have increased
by 18,5% against the plan, incurred on the basis of increase in social protection rights
beneficiaries.
The deficit of the Budget of Montenegro with the state – owned funds has been estimated
at EUR 84,57 million or 2,80% of GDP, which is by around EUR 48,6 million lower than
planned, while against 2009, the deficit will be lower by 2,71% of GDP. However, as we
have already indicated this is not final, until the budget arrears are being determined.
Local Government
Pursuant to the Article 3, of the Rulebook on the manner of reporting on planned and
collected revenues and expenditures of the budget of municipalities and budgetary
indebtedness of municipalities, Municipalities are submitting these Reports to the Ministry of
Finance on a quarterly basis, within 15 days following the expiry of a quarter. Concerning
the fact that Municipalities did not submit Reports for 2010, the Ministry of Finance,
pursuant to the plan for 2010, Report for the first nine moths of 2010, and municipal
budgets rebalance for 2010, has made the estimates of collected revenues and expenditures
execution by the end of 2010.
Estimated local government expenditures for 2010, amount at EUR 179,33 million or 5,93 %
of GDP, which is significantly less compared to the execution in 2009, which amounted at
EUR 222,68 million or 7,42% of GDP.
Plan 2010
Local Government
Current revenues
mill €
Execution 20107
% of
GDP
mill €
% of GDP
% Execution
176,13
5,82
171,39
5,67
97,31
Taxes
74,20
2,45
79,29
2,62
106,85
Personal income tax
22,23
0,73
25,32
0,84
113,87
Real estate turnover tax
13,18
0,44
11,52
0,38
87,44
Local taxes
38,79
1,28
42,45
1,40
109,43
8,07
0,27
6,24
0,21
77,35
Fees
77,57
2,56
72,22
2,39
93,10
Other revenues
16,29
0,54
13,64
0,45
83,74
Duties
Expenditures
183,57
6,07
179,33
5,93
97,69
Current local government expenditures
92,35
3,05
98,44
3,25
106,60
Current expenditures
63,75
2,11
63,48
2,10
99,57
Gross wages and contributions charged to employer
35,31
1,17
33,70
1,11
95,43
Other personal income
5,10
0,17
5,66
0,19
111,04
15,64
0,52
17,66
0,58
112,88
Current maintenance
4,49
0,15
3,41
0,11
75,96
Interest
0,96
0,03
1,04
0,03
107,88
Rent
0,53
0,02
0,45
0,01
84,14
Subsidies
1,01
0,03
0,69
0,02
68,29
Other expenditures
0,70
0,02
0,87
0,03
124,29
Expenditures for material and services
Social protection transfers
0,33
0,01
0,76
0,03
230,30
Transfers to public institutions, NGO’s
25,51
0,84
29,70
0,98
116,44
Capital budget
91,22
3,02
80,89
2,67
88,68
Borrowings and loans
0,23
0,01
0,87
0,03
371,79
Reserves
2,52
0,08
3,63
0,12
143,92
Surplus / Deficit
-6,68
-0,22
-7,04
-0,23
105,31
Primary deficit
-5,72
-0,19
-6,00
-0,20
104,88
Debt repayment
24,99
0,83
43,04
1,42
172,20
Repayment of principal to residents
Repayment of liabilities from previous years
Financing needs
Financing
5,00
0,17
5,47
0,18
109,40
19,99
0,66
37,57
1,24
187,90
-31,68
-1,05
-50,08
-1,66
158,08
31,68
1,05
50,08
1,66
158,08
Borrowings and loans from domestic sources
8,29
0,27
18,44
0,61
222,46
Donations
2,58
0,09
1,38
0,05
53,51
Privatization revenues
14,22
0,47
21,67
0,72
152,43
Use of state deposits
6,59
0,22
8,59
0,28
130,24
Budget Transfers
0,75
0,02
0,90
0,03
119,90
7
Ministry of Finance Estimates
The spending was financed from taxes in the amount at EUR 79,29 million, duties EUR 6,24
million, feed EUR 72,22 million and other current revenues in the amount at EUR 13,64
million. Total current revenues of the local – self government for 2010, are estimated at EUR
171,39 million or 5,67 % of GDP, which is less than its execution in 2009, which amounted
at EUR 183,70 million or 6,12% of GDP.
Izvorni prihodi budžeta lokalne samouprave za 2010. godinu
90,00
plan
80,00
izvršenje
70,00
mil €
60,00
50,00
40,00
30,00
20,00
10,00
0,00
Porezi
Takse
Naknade
Ostali prihodi
Public finance system at the local level in 2009, and at the beginning of 2010, was featured
by the fall in current revenues, increase in outstanding liabilities and illiquidity, increase in
indebtedness and high budgetary deficit level.
Due to the aforementioned problem, majority of local self – governments have implemented
the following: cost – saving and rationalization programmes in local self – government units
and public enterprises founded by the Municipalities, suppliers debt reprogramming plan,
solving the problem of employees proclaimed redundant. In the second half of 2010, public
finance system has stabilized at the local level, however it is evident that the repayment of
liabilities incurred in previous period, is still at the high level.
Local govenm ent expenditures in 2010
5,26
63,48
80,89
29,70
Current outflow s
Transfers to public institutions, NGO
Capital outflow s
Other expenditures
Due to the lower collection of the local – self government current revenues of, as well as
shared revenues, the deficit is estimated at EUR 7,04 million or 0,23 % of GDP. Local self –
government deficit in 2010, is significantly lower than the one in 2009, which amounted at
EUR 36,41 million or 1,21% of GDP. Estimated deficit was to the greatest extent financed
from the sale of assets, partly by using borrowings and loans from domestic sources and the
use of deposits of municipalities.