Romania’s budget deficit in first eight months, highest in eight years

Romania recorded a budget deficit of RON 14.6 billion (EUR 3.14 billion) in the first eight months of this year, representing 1.54% of the gross domestic product (GDP) estimated for this year, according to data from the Finance Ministry. The reported deficit is the highest recorded in this period in the last eight years, both in nominal terms and as a share of the GDP, according to Mediafax. Compared to the same period of last year, the deficit increased by 125% in nominal terms and doubled as a share of the GDP. The budget revenues increased by 13.7% in the first eight months, reaching RON 182.4 billion (EUR 39.2 billion), mainly due to higher social contributions and non-fiscal revenues. Meanwhile, the state’s expenses went up 18%, to RON 196.6 billion (EUR 42.3 billion), as personnel, welfare and interest expenses increased significantly. editor@romania-insider.com (photo source: Pexels.com)