General consolidated budget deficit rises to 3.97% of GDP in the first 10 months of the year
Budget Deficit Swells: Reaches 3.97% of GDP in the Initial 10 Months of the Year
Net VAT receipts increased by 10.1%
The Ministry of Finance announced that the general consolidated budget deficit reached 3.97% of GDP after the first 10 months of this year, totalling 62.81 billion lei. Compared to the same period last year, when the deficit was 3.34% of GDP (47.12 billion lei), the current situation reflects a deterioration of the financial balance.
The general consolidated budget deficit reached 3.97% of GDP in the first 10 months of the year, up from the same period last year (3.34% of GDP), Agerpres reports.
The total deficit amounted to 62.81 billion lei in the period.
Total budget revenue increased by 10.6% (y/y) to 418.85 billion lei. The main contributions came from payroll and income tax, insurance contributions, European funds and corporate income tax. The receipts from the tax on wages and income increased by 21.2%, influenced by higher receipts from the tax on dividends and the tax on pension income. Insurance contributions increased by 12.9%.
Net VAT receipts increased by 10.1%, but growth was more moderate due to the deceleration of the macroeconomic base and the increase in VAT refunds.
Budget expenditure increased by 13.1% to RON 481.66 billion.
Increases were recorded in personnel, interest and social assistance expenditure.
Expenditure as a share of GDP increased by 0.2 percentage points to 30.4% of GDP.
