ECONOMY FINANCE&BANKING

MFP: Budget deficit of 0.59 percent into February, incomes up 21.3 percent, spending up 38.5 percent

The consolidated general budget recorded a 5.5 billion lei deficit, of 0.59 percent of the Gross Domestic Product (GDP), respectively, in the first two months of 2018, considering the incomes to the budget were higher by 21.3 percent as compared to the similar period of 2017 and the spending went up by 38.5 percent, according to data released by the Public Finance Ministry (MFP).

Into February 2018, the execution of the consolidated general budget closed in a 397.1 million lei surplus, or 0.05 percent of the Gross Domestic Product, respectively.

The revenues of the consolidated general budget were on January and February 2018 42.3 billion lei, which means 4.6 percent of the GDP, up 21.3 percent in nominal terms against 2017’s same period.

“Significant increases are recorded as compared to 2017 in case of the collection of the insurance contributions (+28.3 percent) and the non-fiscal revenues (+23.7 percent),” the MFP mentions.

The collections from taxes and dues on property have grown by 18.7 percent against the first two months of 2017, while the proceeds from the levy on the use of the goods, the authorization of the use of the goods or the carrying out of activities by 22.9 percent.

As for the VAT collections, as compared to the same period of 2017, an increase by 7.8 percent was recorded.

The sums from the European Union in the account of payments made were worth 3.2 billion lei.

On the other hand, the spending of the consolidated general budget stood at 47.8 billion lei, up by 38.5 percent against the same period of 2017.

The staff spending grew by 18.8 percent as compared to the similar period of 2017, the growth being determined by the salary rises granted in 2017, and also the ones in the public sector as a result of the enforcement of the Law framework No. 153/2017 on the staff’s pay from public funds.

The goods and services spending was up 21.3 percent against the reference period of 2017. Significant increases were seen in both the local budgets and the national fund budget of social health insurance and the budgets of the public institutions financed from own incomes and budget subsidies.

The grants given in the first two months of 2018 were up 136.8 percent against the same period of the last year. The growth was determined mainly by the payments made (1.2 billion lei) to support the agricultural producers and the subsidies given to sustain public passenger rail and tube transport.

Interests maintained as a percentage from the GDP at the same level as in the reference period, namely 0.2 percent of the GDP.

Spending on social care grew 12.6 percent as it was mainly influenced by the 9 percent increase of the pension point since 1 July 2017, to 1,000 lei, the increase and alteration of the way to establish the monthly allowance for the child welfare insertion incentive.

Investment spending, that includes capital spending, as well as expenditure for the development programmes financed from domestic and external sources, was worth 3.7 billion lei, four times higher than the reference period of 2017, the increases coming mainly from the defence field as well as from the local budgets.

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