Romania’s 1H Budget Def Rises To 1.18% Of GDP

The deficit was the result of revenues worth 80.15 billion lei ($35.48 billion), or 18.2% of GDP and expenses worth RON85.34 billion, or 19.4% of GDP.

Of total revenues, VAT collection contributed by RON20.22 billion to the budget, or 4.6% of GDP, while salary taxes represented RON15.86 billion, or 3.6% of GDP.

Revenue from tax per profit was at RON6.53 billion, or 1.5% of GDP. The insurance budget saw revenues worth RON23.15 billion.

Mid-July, the government has revised up this year’s budget by RON842 million, due to a higher than expected gross domestic product at the end of the year, but kept unchanged the 2.3% budget deficit limit.

In March this year, the government lowered the budget deficit limit to 2.3% of gross domestic product, from 2.7%, to keep it in line with European Union requirements.