Romania's budget deficit reaches 0.63% of the GDP

Romania’s general budget recorded a deficit of RON 5.1 billion (EUR 1.1 billion) after the first seven months of this year, or 0.63% of the GDP, according to the Finance Ministry. By comparison, the budget deficit reached 0.23% of the GDP during the same period last year. The budget revenues amounted to RON 141.2 billion (EUR 30.7 billion) between January and July this year, namely 17.3% of the GDP. They went up by 9% over the same period last year. The revenues from social contributions rose by 16.4% year-on-year whereas those from the profit and income tax increased by 10.8% year-on-year. The revenues from the Value Added Tax (VAT) went down by 4.6% year-on-year. The decrease comes after the successive VAT cuts in the last two years, according to authorities. The budget expenditure reached RON 146.4 billion (EUR 32 billion) in the first seven months of this year, up 11.4% year-on-year. The staff costs increased by 20.3% over the same period last year as a result of wage increases in the second half of last year and earlier this year. editor@romania-insider.com