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September 19, 2019
ECONOMY FINANCE&BANKING

0.17pct of GDP budget surplus in first 4 months of 2017; revenues go up 8.4pct, expenses 6.8pct

The general consolidated budget ended the first four months of 2017 with a surplus of 1.35 billion lei, or 0.17pct of the GDP, given that revenues of 80.1 billion lei (9.8pct of GDP) were 8.4pct higher than in the same period of the previous year, according to data released on Thursday by the Ministry of Public Finance (MFP).

In the first four months of 2016, the general consolidated budget ended with a surplus of 130 million lei, namely 0.02pct of the GDP.

According to MFP, there were increases from the previous year in the collection of taxes on wages and income (+ 13.4pct), social contributions (+ 14.9pct), foreign trade and international transactions tax (+12.4pct) and capital income (+19.1). Collection of other taxes and duties on goods and services increased by 49.8pct compared to the previous year, the increase being mainly due to the evolution of the collections from the contribution due for medicines and to the contracts financed from the budget of the National Social Health Insurance Fund,” the MFP release says.

VAT collection declined by 3.6pct compared to the first four months of 2016, amid a reduction in the standard VAT quota from 24pct to 20pct as of 1 January 2016, which was reflected in the collection of February 2016. Also, since February 2017, the collection rate is influenced by the 20pct to 19pct reduction in the standard VAT quota.

However, monthly VAT collection increased in February 2017 by 2.5pct compared to February 2016, by 8.9pct in March 2017 compared to March 2016, and by 17.9pct in April 2017 compared to April 2016.

Also, compared to 2016, property taxes and fees increased by 48.2pct in the local administrations collections and by 16.7pct in collections to the state budget.

According to the cited source, the amount of 3.8 billion lei was allocated for funding European projects, out of which 3.5 billion lei in agriculture, to be settled from the amounts received from the European Union.

On the other hand, the general consolidated budget expenditures, in the amount of 78.8 billion lei, increased 6.8pct compared to the same period last year and the personnel expenses increased 18.1pct as a result of the wage increases granted to health and education employees, local government and public institutions in the area of performances or concerts.

The social assistance expenditures increased 10.1pct compared to the previous year, mainly influenced by the increase by 5.25pct of the pension point to 917.5 lei, the increase of the allowance granted to the adult with severe visual handicap by increasing 25pct of the net salary of the middle school graduate, the child raising allowance and the insertion incentive, etc. Expenditure on goods and services decreased by 4.4pct compared to the same period of the previous year, decreasing by 3.2pct in the state budget and by 3.8pct in the local administrations.

According to the MFP data, subsidies are up 20.4pct over the same period last year, the major increase coming from subsidies to support agricultural producers.

As regards investments, an amount of 2.9 billion lei and 0.4pct of GDP was earmarked, which includes capital expenditures and development programs funded from internal and external sources.

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