Romania Insider
RO Govt. collects smallest share of GDP as budget revenues among EU states

Romania ranks last among the European Union’s 28 member states in terms of budget revenues to GDP, with a share of 32.3% in 2018.

The average budget revenues to GDP share in EU was 45.1% while, in the Euro area, the share reached 46.5%.

Bulgaria had the second lowest budget revenues (38.3% of GDP) and assuming a similar collection rate, Romania’s Government would enjoy a supplementary fiscal space (for investments) worth 6% of GDP or EUR 12 billion.

Despite having the lowest level of budget expenditures (35.2% of GDP versus 45.8% of GDP on average in the 28 EU member states), Romania also posted the second widest budget deficit in the Union: 3% of GDP (under EU’s methodology), second only to Cyprus (4.4% of GDP).

On the upside, Romania’s public debt is relatively small (35% of GDP at the end of 2018), but not the smallest: countries like Bulgaria (22.3%), Czechia (32.6%), Denmark (34.2%), Estonia (8.4%), Lithuania (34.1%) also boast low indebtedness rates.

(Photo: Shutterstock)

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Romania Insider
RO Govt. collects smallest share of GDP as budget revenues among EU states

Romania ranks last among the European Union’s 28 member states in terms of budget revenues to GDP, with a share of 32.3% in 2018.

The average budget revenues to GDP share in EU was 45.1% while, in the Euro area, the share reached 46.5%.

Bulgaria had the second lowest budget revenues (38.3% of GDP) and assuming a similar collection rate, Romania’s Government would enjoy a supplementary fiscal space (for investments) worth 6% of GDP or EUR 12 billion.

Despite having the lowest level of budget expenditures (35.2% of GDP versus 45.8% of GDP on average in the 28 EU member states), Romania also posted the second widest budget deficit in the Union: 3% of GDP (under EU’s methodology), second only to Cyprus (4.4% of GDP).

On the upside, Romania’s public debt is relatively small (35% of GDP at the end of 2018), but not the smallest: countries like Bulgaria (22.3%), Czechia (32.6%), Denmark (34.2%), Estonia (8.4%), Lithuania (34.1%) also boast low indebtedness rates.

(Photo: Shutterstock)

[email protected]

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