Romania recorded a budget deficit of EUR 2.7 billion (RON 11.4 billion) in the first seven months of this year, which represented 2.09 percent of the country’s GDP, close the level recorded at the end of June, according to the Romanian Ministry of Finance.

The consolidated budget revenues amounted to EUR 24.3 billion (RON 102.1 billion), by 9.4 percent higher compared to last year. The receipts from social insurance contributions have continued to improve, rising with 4.1 percent above the same period last year. The income tax receipts, although they had a downward trend, have maintained at the level reported the previous year.

The main increase remained on non-tax revenues, which fell by 6.3 percent over the same period last year. The amounts received from payments on behalf of the European Union reported an annual advance of 37.4 percent. The general consolidated budget's expenses amounted to EUR 27 billion (RON 113.5 billion), and have increased slightly in nominal terms by 0.1 percent over the same period last year, mainly due to increased costs for European funded projects.

The costs on goods and services rose by 11.5 percent compared to same period last year, while the payments for European funded projects increased by 60.8 percent compared to the first seven months of 2010. The investment costs amounted to EUR 4.1 billion (RON 17.4 billion) in the first seven months.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)