Budget surplus reaches 0.19% of GDP in Romania in Q1

The general budget recorded a surplus of RON 1.52 billion (EUR 336 million) in the first three months of the year, namely 0.19% of the GDP, according to a press release the Finance Ministry issued yesterday. By comparison, the budget surplus amounted to RON 3 billion in the first quarter of last year, or 0.4% of the GDP. In the first three months of 2017, the budget revenues totaled RON 59.53 billion (EUR 13.1 billion). They accounted for 7.3% of the GDP and increased by 7.1% in nominal terms compared to the same period last year. The revenues from the VAT collection saw a decrease of 9.1% year-on-year, due to the reduction of the VAT rate from 24% to 20% at the beginning of 2016. However, the VAT collection increased by 2.5% in February 2017 compared to February 2016, and by 8.9% in March 2017 compared to March 2016. The revenues from the individual income tax went up by 15.8% year-on-year in the first quarter of 2017, whereas those from social contributions rose by almost 15%. The budget expenses reached RON 58 billion (EUR 12.8 billion) in the first quarter of the year, up 10.4% year-on-year whereas the personnel expenses increased by 16.4% following the salary increases granted to employees in the local administration. editor@romania-insider.com