Romania Posts Budget Deficit Of RON16.8B, Or 1.77% Of GDP, In Jan-Sept 2018

In the first nine months of 2017, the country’s consolidated budget posted a deficit of RON6.8 billion, or 0.81% of the GDP. In nominal terms, in 2018, the budget deficit rose nearly 2.5-fold and, as a share in GDP, it grew nearly 2.2-fold, year-on-year.

Between January and September 2018, revenues to the consolidated budget amounted to RON205 billion, accounting for 21.7% of GDP, and were 13.6% higher in nominal terms compared with the year-earlier period. Budget expenditure stood at RON221.7 billion in the first nine months of 2018, 18.4% higher compared with the same period last year.

Social security contribution collections rose 37.3% and income tax collections increased 19.4% year-on-year in January-September 2018.

Value-added tax collections rose 9% year-on-year in January-September 2018, to RON42.4 billion in the first nine months of 2018.

Excise duty collections amounted to RON21 billion, accounting for 2.2% of GDP, 7.9% higher than in the year-earlier period. Property tax collections climbed 4.2% year-on-year in January-September 2018.

Wage and income tax collections declined by 25.3% „due to a cut in income tax to 10% from 16% as of January 1, 2018.

Staff spending grew 25.3% year-on-year in January-September 2018, due to double-digit wage growth in the public sector. Spending on goods and services increased by 9.2% on the year in the first nine months of 2018.

Investment spending, which includes capital expenditure and development programs financed from local and external sources, amounted to RON15.2 billion in January-September 2018, 25.7% higher than in the same period a year ago.