Romania’s budget ended the first five months of the year on a deficit of about EUR 1.1 billion, which was 0.24 percent of the GDP, according to the Finance Ministry, quoted by Mediafax.This was down from 0.28 percent of the GDP at end-April, and from 1.04 percent of the GDP in the first five months of 2013.

During this period, expenses shrunk by 2.3 percent. The numbers mean Romania has the premises to reach its overall deficit target for 2014, according to the Finance Ministry. Romania agreed with international financial institutions to keep the budget deficit within 2.2 percent of the GDP this year.

Revenues to the general budget were of EUR 19 billion in the first five months, of 12.7 percent of the GDP. Revenues were 3.7 percent higher on the same period of 2013. Revenue increases were recorded for social contributions, property taxes, excises, income tax and VAT.

Expenses were down 2.3 percent on the same period of 2013, to some EUR 19.3 billion. Staff expenses were up 2.3 percent, while goods and services expenses were also up 4.6 percent year-on-year.

editor@romania-insider.com