Romania’s budget deficit up to 3% of GDP end-November

Romania’s general consolidated budget had a deficit of EUR 3.8 billion (RON 16.3 billion) in the first 11 months of 2011, according to the Romanian Ministry of Finance. The country’s deficit increased to 3 percent of the GDP at the end of November this year, from 2.4 percent of GDP posted at the end of October. The country’s set annual deficit is 4.4 percent of GDP. The consolidated budget revenues amounted to around EUR 38.5 billion (RON 163.1 billion) at the end of November, up 8.3 percent year-on-year. The biggest increase was recorded in the value added tax (VAT), where revenues were higher by 19.8 percent compared to the same period in 2010. Expenses went up by 1.2 percent in nominal terms over the same period last year, up to EUR 42.4 billion (RON 179.4 billion), mainly due to growing costs for European funded projects. As percentage of GDP, the expenses were down by 1.8 percentage points. The investment costs amounted to EUR 7 billion (RON 30 billion) in the first 11 months of 2011, according to the Romanian Ministry of Finance. Irina Popescu, irina.popescu@romania-insider.com (photo source: Photoxpress)