Government net lending/borrowing in Montenegro

Measures the balance of Montenegro's public accounts: a deficit occurs when government spending exceeds revenue over the year, and a surplus when the reverse holds. It is published by the Ministry of Finance and is expressed as a share of GDP.

Derived as the difference between general government revenue and expenditure over the fiscal year and set against nominal GDP. As an EU candidate country, Montenegro is progressively aligning its accounts with the European ESA methodology.

The fiscal balance is critical for a small economy that uses the euro unilaterally and has no monetary policy of its own, so adjustment falls entirely on fiscal policy. A wide deficit pressures already-high public debt and credit ratings, and is a watch point in the EU accession process.

It is a low-frequency and heavily revised figure. Large infrastructure projects (such as the motorway) and one-off operations can spike a single year's balance, so the primary balance and the debt path are worth watching.