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November 29, 2022

Government passes this year’s second budget revision

The government approved on Thursday the second positive budget revision of this year, with an additional 521 million RON provided for revenues to the general consolidated budget, while expenses increase by 522.1 million RON, the Executive said in a release.

The budget revision covers the mandatory and proper functioning expenditures, as well as social assistance expenses.

Also, funds were redistributed for the programs carried out by the authorizing entities for appropriations, which have an impact on the economy and in supporting the population and companies.

Financing is provided for state aid to agricultural producers who set up crops in the fall of 2021 and were affected by the pedological drought.

Allocations to projects with financing from non-reimbursable external funds are also supplemented, including assistance under the NRRP.

According to the autumn macroeconomic forecast that underpins the budget revision, Romania’s GDP will record a nominal value of 1,396.2 billion RON in 2022 (compared to 1,372.5 billion RON projected at the first budget adjustment).

“The general consolidated budget deficit remains at 80.1 billion RON, but goes down as GDP share from 5.84 percent to 5.74 percent. The execution of the consolidated general budget over the first nine months of 2022 ended with a deficit of 41.70 billion RON, down from a deficit of 44.29 billion RON recorded in the same period of 2021. Expressed as a percentage of GDP, the budget deficit dropped 0.71 percent over the first nine months of 2022 compared to the year-ago period, from 3.75 to 3.04 percent of GDP,” the cited source states.

Revenues to the general consolidated budget amounted to 331.48 billion RON, 22.6 percent more than in the same period last year; this favorable evolution was mainly the effect of the nominal advance of VAT revenues, non-tax revenues, additional collections from energy, insurance contributions and profit tax.

Also, expenses of the general consolidated budget in amount of 373.18 billion RON increased by 18.6 percent in nominal terms compared to the same period of the previous year.

“Expressed as GDP percentage, expenditures over the first nine months of 2022 were 0.57 percent higher compared to the same period of 2021, from 26.6 percent of GDP to 27.2 percent of GDP,” the release states.


Photo: www.gov.ro

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