Romania’s fiscal revenues in January, 5% lower year-on-year

Romania’s fiscal revenues dropped by 5% in January compared to the same month last year, as the revenues from the VAT collection decreased by 20%, according to sources close to the Finance Ministry, reports local Ziarul Financiar. The budget drafted by the current Government estimates a 14% annual increase in the budget revenues. The spending on public sector wages rose by 10% in January year-on-year, following the new law approved at the end of 2016. New measures for boosting salaries in local administration came into force on February 1. This means that the spending on public sector wages will increase even more in February compared to the previous year. However, the January execution will conclude with a minor surplus of 0.1-0.2% of the GDP, due to the sharp reduction in investment spending. The Finance Ministry will announce the official January budget execution results on February 25. editor@romania-insider.com