Romania’s budget deficit reaches 0.77% of GDP in first half

Romania’s general budget recorded a deficit of RON 6.3 billion (EUR 1.38 billion) in the first six months of this year, namely 0.77% of the GDP. By comparison, the budget deficit amounted to RON 3.9 billion (EUR 855 million), or 0.51% of the GDP in the first half of 2016, according to Romania’s Finance Ministry. Prime Minister Mihai Tudose said on Tuesday that the budgetary results in the first six months of the year are not very good. He said that “a huge blockage” has impacted the budget execution. The general budget revenues increased in nominal terms by 8.2% to RON 117.2 billion (EUR 25.7 billion), namely 14.4% of the GDP. Budget expenditure rose by 10% during this period to RON 123.5 billion (EUR 27 billion). The revenue collection from social contributions went up by 16.1% in the first six months of the year whereas the revenues from wages and income tax increased by 11.5% year-on-year. Budget revenues from property taxes dropped by 5.2% year-on-year, mainly due to the removal of the special construction tax on January 1, 2017. VAT revenues decreased by 4.3% in the first half of the year compared to the same period last year. The revenues from the excise duty tax went down by 7.6% year-on-year. FinMin: Romania will meet budget deficit target this year editor@romania-insider.com