Budget deficit of 1.71% of GDP at 6 months. Interest expenses up by almost 48%
Romania reported a budget deficit of 1.71% of GDP in the first half of the year, being lower by 1.15 percentage points compared to the similar period in 2021, according to data from the Ministry of Finance. In terms of value, it amounts to 23.5 billion lei.
The revenues of the general consolidated budget totaled 216.70 billion lei in the first half of 2022, 22.9% above the level received in the similar period of last year.
Salary and income tax receipts totaled 16.93 billion lei in the first half of the year, recording an increase of 18.4% (year/year), supported by the increase in receipts from the single declaration (+40.2%), the tax on dividends (+36.7%), respectively the tax related to pensions (+28.5%).
At the same time, income from the payroll tax increased by 10.9%, below the evolution of the wage fund in the economy (+11.8%). The income from donations (28 million lei) stands out (percentage – 63,597%). As many people have probably not submitted the 230 Declaration, so the state receives that money from citizens who either do not know about it or have forgotten.
The expenses of the general consolidated budget in the amount of 240.2 billion lei increased in nominal terms by 14.3% compared to the same period of the previous year. Expressed as a percentage of the Gross Domestic Product, expenditures for the first six months of 2022 registered a decrease of 0.28 percentage points compared to the same period of 2021, from 17.78% of GDP to 17.50% of GDP. Personnel expenses totaled 58.33 billion lei, increasing by 4.7% compared to the same period of the previous year. Expressed as a share of GDP, personnel expenses represent a level of 4.2% of GDP, 0.5 percentage points lower compared to the same period of the previous year.
Interest expenses were 13.12 billion lei. According to the Ministry of Finance, compared to the same period of the previous year, interest payments related to the public debt portfolio increased by 4.25 billion lei (+47.9%) “as a result of the increase in interest rates in the inflationary context manifested especially since the second part of 2021, both domestically and internationally, and as a result of the uncertainties generated by the armed conflict in Ukraine”. Investment spending is 4% below half of 2021, totaling almost 10.5 billion lei.