Romania’s tax collection in full 2023 heads to 1.2% of GDP below target

The volume of taxes collected in Romania was close to the target in November but is likely to end the year some RON 19 billion (EUR 3.8 billion, 1.2% of GDP) below the RON 404 billion (EUR 80 billion) target, according to Profit.ro, quoting operative data from the tax collection agency ANAF.

At the end of October, the tax collections were RON 17.6 billion (RON 1.76 billion per month) below plan, and the lag increased by RON 723 million in November to RON 18.32 billion in the first eleven months of the year.

The 1.2% of GDP missed tax revenues added to the 4.4%-of-GDP initial public deficit target results in a 5.6%-of-GDP deficit, assuming public spending is kept in line with the initial plan.

However, the budget execution as of October indicates that both the revenues lag behind target and the expenditures increased above plan. The government wishes to keep the full-year public gap below 6% of GDP (cash terms), but the final figure is likely to surpass the 5.75% deficit in 2022.

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