Consolidated state budget deficit down to 0.79pc of GDP, five times higher than last year

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The consolidated state budget deficit has decreased to RON 6.6 billion (0.79% of the GDP) in the first ten months of the year, down from RON 6.8 billion (0.81% of GDP) in the first nine months, the Ministry of Finances informs.

As compared to the budget deficit in ten months of 2016, the indicator has increased five times, from RON 1.3 billion (0.17% of GDP) to RON 6.6 billion.

The consolidated state budget revenues amounted to RON 207.9 billion (24.7% of GDP) and were by 10.8% higher in nominal terms against the same period in the previous year. Higher revenues were registered for social contributions (+16.4%) and for wage and income tax (+9.1%) and non-fiscal revenues (+17.3%).

The revenues from property tax fell by 11.7%, mainly due to the repeal of the tax on special constructions (‘pole tax’) since January 1, 2017.

Revenues from other taxes and taxes on goods and services have increased by 60.3%.

VAT revenues registered a slight increase of 0.5%, whereas the revenues from excise duties were by 3% lower against the same period last year.

The amounts from the EU for payment made are of RON 12.3 billion.

The expenditures of the consolidated state budget amounted to RON 214.5 billion in nominal terms, by 13.6% higher in the first ten months.

Staff expenditures increased by 21.2%, due to wage increases in late 2016 and in 2017.

Expenses on goods and services have increased by 4.2%. Interest rates are by 1.3% higher against the same period last year.

Subsidies grew by 3.8% against the similar period last year, with the same level of the GDP, i.e. 0.6%. Expenditures for social assistance increased against last year by 12.5%, mainly due to the increase of the pension point since January 1, 2017.

Expenditures for investments, including capital expenditures and the funding projects from internal and external sources, were of RON 14.7 billion, i.e. 1.7% of the GDP.

The budget deficit target is 2.96% of GDP.

According to the autumn economic forecast released by the European Commission, the public deficit would reach 3% of GDP in 2017 and in 2018 will get worse, up to 3.9% of GDP and 4.1% of GDP in 2019, the same source informs.

 

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