Romania records EUR 1.18 bln budget deficit in two months

Romania’s general consolidated budget, which includes the state budget as well as the pension and social security budget, recorded a RON 5.5 billion (EUR 1.18 billion) deficit in the first two months of this year, representing 0.59% of the estimated gross domestic product (GDP) for this year. Last year, Romania had a budget surplus of RON 397 million (EUR 86 million) in the same period. The state’s consolidated revenues reached RON 42.3 billion (EUR 9.08 billion) in the first two months, up by 21.3%, in nominal terms, versus the same period of 2017. Meanwhile, the expenses increased by 38.5%, to RON 47.8 billion (EUR 10.25 billion). The state collected more money from taxes and social contributions but also spent more on salaries, pensions and on the acquisition of goods and services. The state’s capital expenses also increased almost four-fold compared to the same period of last year, reaching RON 3.7 billion (EUR 794 million), mainly due to the higher defense spending. Romania’s budget deficit reached 2.88% of the GDP in 2017 editor@romania-insider.com