Romania’s budget deficit at 0.77 pct of GDP in H1

Georgiana Bendre 26/07/2017 | 11:02

The general consolidated budget closed with a deficit of 0.77 percent of GDP, or RON 6.3 billion, in the first semester of the year, compared with RON 3.9 billion, respectively 0.51 percent of GDP in the same period of 2016, according to the Public Finance Ministry.

The revenues of the general consolidated budget increased in nominal terms by 8.2 percent to RON 117.2 billion, which means 14.4 percent of GDP, while the expenses increased by 10 percent to RON 123.5 billion.

According to the Ministry, the growth in revenues was registered from the social contributions (16.1 percent), from the tax on salaries and revenues (11.5 percent) and from capital revenues (14.2 percent).

The charges from taxes and housing taxes dropped by 5.2 percent compared with the similar period of 2016, determined mainly by the elimination of tax on special constructions from January 1, 2017.

The charges from taxes on goods and services increased by 62.1 percent, determined mainly by the charges from contributions for drugs, as well as the contracts cost-volume/cost-volume-result financed from the budget of the national fund of social and health insurances.

Revenues from VAT registered a drop by 4.3 percent compared with the six months of 2016, due to the reduction of VAT standard quota from January 1, 2016 from 24 percent to 20 percent, which was reflected in the charges from February 2016. At the same time, from February 2017 the revenues are affected also by VAT standard quota reduction, from 20 to 19 percent.

Also the excises were lower by 7.6 percent, influenced by the reduction of their level for some energy products starting January 1, 2017.

BR Magazine | Latest Issue

Download PDF: Business Review Magazine March (II) 2024 Issue

The March (II) 2024 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “BAT DBS Romania Hub: A Vibrant New Office For An Employee-Centric
Georgiana Bendre | 27/03/2024 | 17:32
Advertisement Advertisement
Close ×

We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

Accept & continue