Budget deficit reaches EUR 1.75 billion in the first five months of 2011

Romania's general consolidated budget registered a deficit of EUR 1.75 billion in the first five months of 2011, representing 1.36 percent of GDP, according to the data provided by the Ministry of Public Finance (MFP). In January-May, the income to the general consolidated budget rose by 10.1 percent to around EUR 16.73 billion, compared with the previous year, according to MFP. Income from social insurance contributions has also continued to improve, being with 3.2 percent higher than during the same period last year. For the budget of the national fund of health insurance the spending increase was 14.8 percent, due to payments for medical services and medicines. Payments for EU funded projects increased by 61.5 percent from the first five months of 2010, while the interest expenses increased by 34.7 percent. Irina Popescu, irina.popescu@romania-insider.com (photo source: sxc.hu)