Romania’s revenues to state budget down 2.8 pct on four months, while expenses went up

The revenues to the consolidated budget reached RON 73.9 billion in the first four months of this year, which is a decrease of 2.8 percent in nominal terms against the same period of last year, according to the Ministry of Finance.

The amount collected by tax authority ANAF has went up by 1 percent to RON 66.6 billion. Although the state collected more from the profit tax, the social insurance contributions and excises, on VAT the collection went down.

The Ministry of Finance said that the collected VAT fell by 8 percent due to the reduction of the consumption tax from 24 to 20 percent starting this year. The VAT for food products was already cut to 9 percent from mid-2015.

Moreover, the VAT reimbursements have gone up by RON 254.8 million to RON 5.1 billion.

At the level of local administrations, there was a sharp drop of 20.6 percent in the amount of property tax that was collected.

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Meanwhile, the expenditure from the consolidated budget rose by 5.3 percent in nominal terms to RON 73.8 billion.

Personnel expenses went up by 8.4 percent in the first four months, due to the increase of wages for several public sector employees, such as doctors and teachers.

The expenditure for goods and services went up by 2.7 percent, while the expenses for social assistance rose by 7 percent, due to the increase in the pension point and the doubling of the state allowance for pupils.

The consolidated budget ran a surplus of RON 130 million, accounting for 0.02 percent of GDP by April. In the same period of last year, the surplus stood at RON 5.96 billion, or 0.84 percent of GDP.

All in all, the investment expenses were up by 35.2 percent to RON 7.2 billion in the first four months.

Ovidiu Posirca