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Consolidated budget deficit reaches 0.65 pc of GDP at 4 months

Consolidated budget deficit reaches 0.65 pc of GDP at 4 months

The consolidated general state budget deficit has climbed to RON 6.05 billion in the first four months of 2018, meaning 0.65 percent of the GDP, compared to a surplus of RON 1.4 billion (0.17 percent of GDP), recorded in the similar period of last year, the Ministry of Public Finances (MFP).

Given that after the first quarter of 2018 the consolidated budget deficit was RON 4.46 billion (0.48 percent of GDP), it means that in April the negative balance amounted to RON 1.59 billion.

The consolidated general government revenues in January – April period amounted to RON 89.6 billion, representing 9.6 percent of GDP, were 11.8 percent higher in nominal terms compared to the same period of the previous year.

Regarding the VAT revenues, the MFP figures show that in the first four months of this year there was an increase of 1.1 percent to RON 17. 5 billion, while the excise tax revenues amounted to RON 8.8 billion (0.9 percent of GDP), up by 14.7 percent compared to the same period of the previous year.

At the same time, income tax and property taxes also grew by 6.7 percent over the same period in 2017.

On the other hand, there were decreases in earnings from salary and income tax by 18.2 percent following the cut of the income tax rate from 16 percent to 10 percent as of  January 1, 2018.

Moreover, the amounts from the European Union (EU) to the payments made amount to RON 5.02 billion.

As regards the expenditures of the consolidated general state budget, these amounted to RON 95.6 billion, up by 21.5 percent as compared to 2017.

About Anca Bernovici