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April 13, 2021

Budget surplus rose to 0.9pct of GDP after first five months

The general consolidated budget for the first five months of 2015 closed with a surplus of 6.3 billion lei, 0.9 percent of GDP respectively, compared to a 1.58 billion lei deficit (0.24pct of the GDP) last year.

During the first four months of the year, the general consolidated budget had registered a six billion surplus, equivalent to 0.85pct of GDP.

According to data released by the Ministry of Public Finance on Friday, the revenues of the general consolidated budget amounted to 93.16 billion lei (13.3pct of GDP) and were nominally 10.8pct year on year.

Compared to last year, increases were registered in VAT revenues (17.5pct), tax income, (15.1pct), non-tax revenues (19.2pct), and excise duties (9.8pct).

The revenues from social insurance contributions decreased with only 0.8pct compared to last year, under the influence of a 5pct decrease in employers’ contributions, as well as of a 0.5pct increase of the contribution to the second pillar of pensions in 2015.

In the local administration, compared to last year, there was a 3.5pct increase in property tax, a 7.1pct increase in the tax on assets, and a 0.8pct growth of non-tax revenues.

The expenditure of the general consolidated budget, amounting to 86.8 billion lei, grew in nominal terms with 1.4pct compared to last year, but at the same time decreased by 0.4pct of GDP.

Structurally, on the main expenditure taxes there were decreases in the field of goods and services (3.8pct) and subsidies (2pct). Expenditure was significantly lower owing to interests (21.9pct decrease), as a consequence of the seasonality of payments as well as of a decrease in returns of government bonds.

The investment expenditure, including the capital expenditures and the development programs financed from both internal and external sources, amounted to 7.3 billion lei, representing 1.0pct of GDP.

For the year 2015, the Romanian authorities and the international financial institutions agreed upon a budget deficit of 1.83pct of GDP. Last year, the general consolidated budget recorded a deficit equivalent to 1.85pct of GDP.


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