Romania’s revenues to the budget down 1.4 pct in the first two months of 2017 y/y

Revenues to Romania’s consolidated budget were lower by 1.4 percent in the first two months of 2017, to RON 34.9 billion (4.3 percent of the GDP), compared with the same period of 2016, according to the Finance Ministry. 

The investment expenses amounted to RON 870.1 million, meaning 0.11 percent of the GDP.

The trend of revenue decrease slowed down in February compared with January  (-1.4 percent after two months compared with -5.7 percent in January). On the other hand, the drop in the collected revenue question the feasability of the growth measures in pensions, salaries and compensations promised by the Government for 2017 and 2018, according to HotNews.ro.

According to a Ministry release, the general consolidated budget on the first two months of this year closed with an surplus of RON 397.1 million, respectively 0.05 percent of the GDP compared with RON 788.1 million, respectively 0.10 percent of the GDP registered in the same period of 2016.

The biggest drop in revenues is registered to the VAT collected, with a drop by 15.8 percent compared with the first months of 2016. The Ministry says that this is due to the reduction in VAT standard quota starting January 1 2016 from 24 percent to 20 percent, which was reflected in the VAT collected starting February 2016.

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„At the same time, starting February 2017, the reduction in VAT standard quota from 20 percent to 19 percent, is reflected in revenues,” says the Ministry.

Also the excises revenues were lower by 5.3 percent compared with the same period of 2016, explained by the Ministry through their reduction for some energy products starting January 1 2017.

However, compared with 2016,  the state recorded gains in revenues from salaries and income taxes (13.6 percent), social contributions (11.9 percent), external trade tax and international transactions (18.8 percent), as well as from capital revenues (76.8 percent).

The revenues from contributions and goods and services taxes went up by 90.9 percent compared with the same period of 2016.