Romania Posts Budget Deficit of 0.27% of GDP in Jan-May

In January-May 2016, Romania’s consolidated budget posted a deficit of RON0.8 billion, or 0.1% of GDP.

Revenues to the consolidated budget amounted to RON98.4 billion, or 12.1% of GDP, and were 7.9% higher than in January-May 2016.

Compared with January-May 2016, income tax collections increased 12.9%, social security contribution collections rose 15.9%, tax collections on international trade rose 10.1%, while tax collections on capital income increased 13.2%, the data showed.

Value-added tax collections declined 5% on the year in January-May, as the standard rate was cut from 20% to 19% as of February 1, 2017, after a four-point cut as of January 2016.

Excise duty collections declined 9.4% on the year in the first five months, the data showed.

Budget expenditure stood at RON100.6 billion, 9.4% higher in nominal terms compared with January-May 2016, while staff spending grew 19.1% due to public sector wage hikes.

Goods and services spending were 0.5% lower on the year in the first five months of 2017.

A total RON4.1 billion was allocated for investments in January-May, or 0.5% of GDP, which includes capital expenditure and development programs financed from local and external sources.