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.
Romania’s budget deficit will most likely reach 4% of the gross domestic product (GDP) this year, says Ionut Dumitru,...