director - Ministarstvo finansija

Macrofiscal report
BULLETIN OF THE MINISTRY OF FINANCE/JANUARY-MARCH 2006
increased in March by 2,32%.
Given the fact that the living costs in
March this year were increased by 0,2% as
compared to February, real earnings in our
Republic were increased by 2,12% in March
this year.
CONCLUDING REMARKS
Public spending in the first quarter of
2006 was realized to the amount of 174,13
mil. eur, being lower than planned by 17 %.
Deficit of public spending in the first
quarter of 2006 was realized to the amount
of 1.99 mil. eur, being lower than planned, as
follows: Government Budget- 5,49 mil eur;
Pension and Disability Insurance Fund- 0,63
mil. eur; Health Insurance Fund- 0,46 mil.
eur; and local self-government - 0,69 mil. eur.
Employment Agency made a surplus to the
amount of 3,50 mil. eur.
Consolidated public spending in the first
quarter of 2006 was realized to the amount
of 174,13 mil. eur, and was financed from:
taxes to the amount of 103,00 mil. eur; contributions
to the amount of 43,55 mil. eur;
stamp duties and fees to the amount of 4,81
mil. eur; charges to the amount of 6,00 mil.
eur; and other revenues (including receipts
from loan repayment) to the amount of
14,78 mil. eur. Realized revenues as compared
to planned amounts show that in the first
quarter of 2006, revenues from taxes, stamp
duties and fees and receipts from loan repayment
and funds transferred from the preceding
year were higher than planned, while revenues
from contributions and charges as well
as other revenues were lower than planned.
High level of tax revenues is based on value
added tax, corporate income tax and customs
duties collection.
Macroeconomic developments in the
first quarter of 2006 have positive trend.
Industrial production for the period from
January to March 2006 is higher by 4,4% as
compared to the same period in 2005.
Cumulative growth rate of retail prices is
higher by 2,5% in the period from January-
March 2006 as compared to the same period
last year. Living costs in February 2006 are
increased by 2,9% as compared to same
month in 2005. As living costs were increased
by 0,3% in February 2006 as compared to the
previous month, real earnings in
Montenegro were increased by 11,87% in
February 2006.
The Ministry of Finance will undertake
measures for efficient collection of public revenues,
particularly with respect to personal
income tax and customs duties, as well as for
a more regular payment of transfers in the
public spending system.
48