The general consolidated budget registered a surplus of RON 3 billion, i.e. 0.37 percent of GDP in the first month of this year, considering that the budget revenues were 5.7 percent lower than in January 2016, while expenses higher by 3.5 percent, Ministry of Public Finances (MFP) data reveal.
Romania ended January 2016 with a surplus of the general consolidated budget of RON 4.7 billion, i.e. 0.62 percent of GDP.
The general consolidated budget revenues, amounting to RON 19.2 billion, represent 2.4 percent of GDP. The most significant decrease was recorded in VAT revenues which dropped by 24.8 percent.
“Regarding the VAT revenues, they decreased as compared to the same period of 2015 by 24.8 percent, being affected by the cuts in standard VAT rate from 24 percent to 20 percent since January 1, 2016 which was reflected in the revenues in February 2016. Also, VAT refunds were higher by RON 75 million compared to the same month last year, representing RON 1.2 billion,” MFP also shows.
Increases were registered against the same period last year for the following revenues: payroll tax and income (+ 24.9 percent), tax on foreign trade and international transactions (+ 10.1 percent), capital revenues (+ 63.9 percent) and social contributions (+ 9.4 percent).
According to MFP, the consolidated budget expenditures, amounting to RON 16.2 billion, have increased in nominal terms by 3.5 percent against the same period last year but decreased by 0.1 percentage points as share of the GDP.
At the same time, staff costs increased by 8.2 percent against the same period last year, mostly due to the wage increases granted in H2 2016 and to the increase of the gross national minimum wage.
Moreover, investment expenditure, including capital expenditures and those related to development programs financed from internal and external sources, stood at RON 305.8 million, i.e. 0.04 percent of GDP.