Romania’s public deficit leaps to over 1.1% of GDP in Jan-Feb

Romania's budget deficit rose to RON 12.76 billion (EUR 2.62 bln) in January-February - or 1.14% of this year's projected GDP, up from 0.33% in January, according to the Finance Ministry.

The deficit widened by 54% compared to the gap posted in the first two months of 2020.

The Government explains that it spent RON 4.18 bln, or 0.37% of GDP, to mitigate the crisis's effects: accelerated VAT return and direct expenditures.

The budget revenues increased by 4.1% year-on-year to RON 53.4 bln (EUR 8.9 bln) and the tax revenues were 2.3% higher than last year (RON 26.1 bln).

Meanwhile, the expenditures rose by 11% year-on-year to RON 66.1 bln (EUR 13.5 bln).

Jan-Feb data indicate slight improvement compared to January, when the tax revenues have contracted by 2.3% year-on-year and expenditures were 17% higher yoy. However, in the first month of the year, the budget deficit was only 0.33% of GDP - compared to 0.81% of GDP in February.

The Government targets a 7.16%-of-GDP budget deficit this year.

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