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Budget deficit up to RON 6.5bn, or 0.78pc of GDP in eight months

The execution of the general consolidated state budget in the first eight months of 2017 concluded with a deficit of RON 6.5 billion, or 0.78% of GDP, against the deficit of RON 3.1 billion, or 0.41% of GDP, in the similar period of 2016, the Ministry of Public Finance (MFP) informs.

During January-July 2017, the deficit stood at RON 5.1 billion, or 0.63% of GDP, as compared to RON 1.74 billion (0.23% of GDP) in the same period last year.

The consolidated general state budget revenues of RON 160.4 billion, representing 19.2% of GDP, were by 8.9% higher, in nominal terms, against the same period of the previous year.

According to the MFP, increases were registered from the collection of social contributions (+16.6%), from wages and income tax (+10.4%), non-tax revenues (+14.0%) and of capital income (+13.4%).

On the other hand, the tax and property tax receipts decreased by 6.4% as compared to the same period in 2016, the decrease being mainly due to the abolition of the tax on special construction on January 1, 2017.

In terms of VAT revenues, they declined by 1.7% as compared to the first eight months of 2016, given the cut in the standard VAT rate from 24% to 20% as of January 1, 2016. The excise duties collection was by 5.2% lower.

As regards the general consolidated expenditures, amounting to RON 166.9 billion, they increased in nominal terms by 11% against the ones registered in the first eight months of last year.

Staff expenditures went up by 21.4% against the same period last year, driven by wage increases in H2 2016.

Expenditures on goods and services increased by 4.1% as compared to the same period of the previous year, with a larger increase in the National Health Insurance Fund of 6.5%.

“Subsidies are up 4.6% against the same period last year, while interest rates are by 5.9% against the same period of the previous year,” the Finance Ministry informs.

 

 

 

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