Romania’s budget revenues go up 7% in January on record VAT collection

Romania’s public budget posted a marginal deficit of 0.04% of year’s projected GDP in January, a month when traditionally the state budget recorded small seasonal surpluses.

On the upside, the budget revenues increased by 7% compared to the same month last year, to RON 27.55 billion (EUR 5.8 bln), in line with the Government’s estimates. Net VAT collections hit a record level of RON 8.4 bln (EUR 1.75 mln).

The budget revenues in January “reflect the positive reaction of the private environment to the correct behavior of the state in paying its debts to taxpayers on time, both for the services provided and for the amounts to be repaid,” the Finance Ministry said in a press release.

In January, the tax collection agency ANAF reimbursed VAT worth RON 1.72 bln (EUR 360 mln) to taxpayers, RON 1 bln more than in January last year, maintaining the policy of paying in due time the amounts owed to companies, the Finance Ministry added.

The state’s expenses increased by 11.6% in the first months of this year, to RON 28 bln (EUR 5.87 bln), mainly driven by higher pensions and salaries in the public sector. However, the investment expenses almost tripled as well, to RON 1.31 bln (EUR 274 mln). Thus, the budget deficit in January stood at RON 460 mln (EUR 96 mln).

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