Romania's public deficit leaps up to 2.4% of GDP at end-August

The deficit of Romania's general government budget rose to nearly RON 33 bln - or 2.4% of GDP in January-August, from 1.9% of GDP in January-July, the Finance Ministry announced.

The budget gap remains, however, moderate compared to the 5.8%-of-GDP full-year target and the 3.3%-of-GDP deficit posted in the same period last year.

The budget revenues rose by 22% YoY to RON 293.9 bln, particularly helped by the 22.6% YoY increase in the VAT collections (from 4.2% to 4.4% of GDP) and the 278% surge in "other taxes" (from 0.3% to 0.9% of GDP). The" other taxes" rose by RON 8.9 bln (EUR 1.8 bln), primarily representing the windfall taxes collected from the energy companies.

The budget expenditures increased by 16.7% YoY to RON 326.8 bln. The social security expenditures rose by 17.8% YoY, and its share in the year's projected GDP rose from 8.4% to 8.5%.

The public payroll, in contrast, edged up by only 4.5% YoY and their shares in the year's GDP dropped from 6.3% to 5.6%.

(Photo source: Robbiverte/Dreamstime.com)