The revision will be negative because revenue falls short of projections, says PM Ponta.The deficit of the general consolidated budget rose slightly in September and reached RON 8.1 bln or 1.3 per cent of GDP after the first nine months, a level that remains within the limits of the budget policy established for this year, according to the Finance Ministry’s data. The budget deficit rose by approximately RON 2 bln to RON 7.92 bln, representing 1.27 per cent of GDP. In the first nine months the general consolidated budget’s revenues, totaling RON 147.3 bln or 23.5 per cent of GDP, were 4.4 per cent higher in nominal terms compared to the ones registered in the same period last year. The profit tax revenue dropped by 1.3 per cent year-on-year, as a consequence of a drop in revenues from commercial banks, while the sums collected from companies grew by 2.1 per cent. Income tax revenues grew by 7.9 per cent as a result of the hike in salary incomes registered as a consequence of restoring the public sector employees’ salaries and of hiking the pension point and the minimum salary on February 1 and July 1 respectively.
Similarly, compared to the same period last year, the VAT revenues grew by 4.1 per cent, given the fact that VAT inflows grew by 4.2 per cent while VAT reimbursements were 5.5 per cent higher, Mediafax informs. At the same time, excise revenues were 2.8 per cent higher because of the hiking of the diesel oil, beer and cigarettes excise, as well as the impact of the exchange rate taken into account when calculating these taxes.
Significant hikes were registered in the case of dividend revenues (+ RON 217.7 M), asset use tax (+ RON 1,816.4 M, mainly as a result of collecting license taxes for the awarding of the rights to use radio frequencies), as well as the sums from the sale of emission certificates (+ RON 293.7 M). The revenues from social insurance contributions grew by 4.7 per cent, backed by the hiking of salary incomes following the restoration of public sector salaries and the hiking of the minimum salary on February 1 and July 1 respectively.
The general consolidated budget’s expenditures, totaling RON 155.4 bln and representing 24.8 per cent of GDP, grew by 4.8 per cent in nominal terms in the first nine months compared to the same period last year, but dropped by 0.4 per cent as a share of GDP. Expenditures on personnel grew by 14.7 per cent as a consequence of the restoration of public sector salaries and of the payment of obligations set through court orders. The expenditures on goods and services grew by 12.1 per cent as a consequence of legislative measures and of the resources allocated for the payment of arrears to local administrations, as well as the payment of arrears to hospitals.
Likewise, expenditures on investments, including capital expenditures, as well as expenditures related to development programs financed from internal and external sources, stood at RON 19.4 bln (3.1 per cent of GDP).
On the other hand, Prime Minister Victor Ponta has recently stated that the national budget revision will be negative because the revenue falls short of projections. “In terms of excise duties and Value Added Tax (VAT) collected things are quite good, but the problem is particularly as far as the profit tax is concerned, where the biggest share of the tax revenue was projected on taxes on the banks’ profits that failed to materialise as regulations changed and then many companies went into insolvency, some of which were justified to do so, while others chose to avoid paying taxes as they see they can do so,’ said Ponta, Agerpres informs.
He said in relation to the ongoing teachers and doctors’ labour protests that the solution to solve the issue would be to fight against tax evasion, adding that he will scrutinise the National Tax Administration Agency (ANAF) and take the necessary measurers unless things get settled.