The general consolidated budget ended H1 with RON 3.85 billion deficit, namely 0.5% of GDP against the scheduled deficit for the first half of 1.9% of GDP, according to data released on Monday by the Ministry Public Finance (MFP).
The budgetary execution after the first five months concluded with RON 780 million deficit, namely 0.1% of GDP, against a surplus of RON 130 million, namely 0.02% of GDP, after four months in 2016.
According to MFP, the general consolidated budget revenues, amounting to RON 108.4 billion, represent 14.3% of GDP. Increases were registered against the same period last year for the following revenues: income tax (+12.5%), excises (+7.7%), social security contributions (+ 6.3%), tax on wages and incomes (+2.3%) and the tax on use of goods (+15.5%).
Regarding the VAT revenues, they decreased as compared to the same period of 2015 by 9.5%, being affected by the cuts in standard VAT rate from 24% to 20% since January 1, 2016 which was reflected in the revenues in February, and the introduction of a reduced rate of 9% for foodstuff, applied since June 1, 2015. Against the schedule for H1 the VAT revenues were by 1.6% larger.
According to MFP, the consolidated budget expenditures, amounting to RON 112.2 billion, have increased in nominal terms by 5.5% against the same period last year but decreased by 0.1 percentage points as share of the GDP.
Staff costs increased by 10.7% against the same period last year, mostly due to the wage increases granted in H2 2015 and to the increase of the gross national minimum wage.
According to data in 2015, the consolidated general budget ended H1 2015 with a surplus of 0.6% of GDP, namely RON 4.2 billion.