Budget deficit of 0.51% of GDP in the first two months

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The general consolidated budget went on deficit in the second month of this year, with the execution in the first two months showing a deficit of RON 5.2 billion (0.51% of GDP), down against the negative balance of RON 5.5 billion (0.58% of GDP) recorded in the same period last year.

In January 2019, the budget recorded a surplus of RON 700 million (0.07% of GDP).

According to the data released by the Finance Ministry, in the first two months of this year, the consolidated general budget revenues amounted to RON 46.7 billion, representing 4.6% of GDP, compared to 4.5% of GDP in 2018. As percentage, the revenues were by 10.4% higher, in nominal terms, as compared to the same period of the previous year.

Increases were registered in the case of excise duty receipts (+22.2%), insurance contributions (+27%) and VAT (+14.1%).

Also, tax and property tax receipts increased by 11.3%.

On the other hand, there was a decrease in revenues from wages and income tax by 25.2% on the background of the reduction, since January 1, 2018, of the income tax rate from 16% to 10%, reflecting in receipts starting with February 2018.

The amounts from the European Union for the payments made were of RON 2.4 billion.

The budget expenditures amounted to RON 51.9 billion in the first two months of this year, by 8.6% higher than in the same period of the previous year.

Staff expenditures were by 25.2% higher than those in the first two months of 2018.

Goods and services expenditures increased by 21.5% compared to the first two months of the previous year.

Interest expenses have increased by 15.7%.

Social assistance spending went up by 18% against last year, driven mainly by a 10% rise in the pension point since July 1, 2018.

Expenditures on investments, including capital expenditures, as well as those related to the development programmes financed from domestic and external sources, amounted to RON 1.6 billion.

The consolidated general budget for 2019 is built on an estimated GDP of RON 1,022 billion, with a deficit of 2.76% of GDP.

Last year, the consolidated budget deficit stood at 2.88% of GDP, the same level as in 2017.

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