Budget deficit doubled in June


The budget deficit doubled in June and reached 0.5 percent of the GDP at the end of the first half, as revenues went up by 2.9 percent in nominal terms on a year-on-year basis and expenses were cut by 0.3 percent, according to the Ministry of Finance data.
After five months, the budget revenues went up by 3.7 per cent whereas the expenses were 2.4 percent smaller. At the end of June, the revenues totaled RON 100.4 billion (15.2 percent of the GDP) and the budget expenses reached RON 103.9 billion (15.7 percent of the GDP), leading to a deficit of RON 3.5 billion.
Romania committed within the agreements with the international financial institutions that its budget deficit of this year should not exceed 2.2 percent of the GDP.
In terms of revenues there were higher figures in the first half at the social security contributions revenues (RON 1.47 billion), taxes and fees for property (RON 957.8 billion), excise taxes (RON 1.08 billion), tax on profit (RON 689.5 million) and VAT (RON 459.3 million).
There were higher revenues at the local administrations for property taxes and fees (5.2 percent), taxes on usage of goods (3.6 percent) and non-fiscal revenues (2.2 percent).
The amounts reimbursed by the EU in the account of payments made decreased by 10.8 percent on a year-on-year basis. The general consolidated budget reported only the reimbursed amounts for the projects where the beneficiaries are public institutions, without including the private sector.
The amount spent from the budget for goods and services was 5.7 percent higher, as the major increase was reported at the national fund of healthcare, 11.3 percent, following the payment of arrears by the pharma drugs suppliers.
The investments expenses, including the capital expenses as well as the development programs funded from internal and external sources, amounted to RON 9.6 billion, which represents 1.5 percent of the GDP, compared to RON 12.2 billion last year during the same period. The Finance Ministry notes that over the first half of last year the arrears of the National Company of National Roads and Motorways were paid, in amount of roughly RON 2 billion, as well as arrears of the local administrations from loans from the treasury in amount of RON 800 million.

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