0.77pc of GDP budget deficit in H1

In the first half of the year the consolidated state budget registered RON 6.3 billion deficit, i.e. 0.77% of GDP, up against de levels last year of RON 3.9 billion (0.51% of GDP), the Finance Ministry informs.

Nominal budget revenues increased by 8.2% to RON 117.2 billion (14.4% of GDP), whereas expenditures increased by 10% to RON 123.5 billion.

Social contributions collection grew by 16.1%, the tax on wages and earnings by 11.5% and capital revenues by 14.2%.

The collection of taxes has decreased by 5.2% against the similar period last year, mainly due to the elimination of the tax on special constructions (the so-called pole tax – our note).

• Collection of taxes on commodities and services – up by 62.1%;
• Collection of VAT – down by 4.3% against the same period last year;
• Collection of excises – down by 7.6%;
• Amounts from the EU – RON 5.6 billion, of which RON 5.1 billion for agriculture projects;
• Expenditures with personnel – up by 19.5%;
• Expenditures on commodities and services – up by 0.9%, interest down by 4.2%, subsidies up by 34.4%;
• Social assistance expenditures – up by 9.8% against last year;
• Investments – RON 6 billion, i.e. 0.7% of GDP;

Asked about meeting the budget targets, PM Mihai Tudose said on Tuesday: “Not very good. It was a huge blockage.”