Romania lowers budget deficit slightly to 0.96% of GDP between January-July

Romania’s general consolidated budget had a deficit of some EUR 1.37 billion (RON 6.02 billion) in first seven months of the year, namely 0.96 percent of the gross domestic product (GDP), according to the recent data provided by the country’s Ministry of Finance. In the same period last year, the budget deficit was 1.19 percent of the GDP. The consolidated budget revenues amounted to around EUR 26.4 billion (RON 116.1 billion) in January-July this year, up 5.2 percent over the same period last year, and represented 18.5 percent of the GDP. Revenues from income tax increased by 8.7 percent in the first seven months of the year, while for the value added tax (VAT), revenues went up 4.9 percent year-on-year. Expenses also increased 4.1 percent in nominal terms over the same period last year, up to EUR 27.8 billion (RON 122.1 billion), representing 19.5 percent of the GPD. The investment costs amounted to some EUR 3.3 billion (RON 14.9 billion) in the first seven months of the year, according to the ministry of Finance. Irina Popescu, irina.popescu@romania-insider.com