Romania To Revise Budget Revenue Down By RON3.4B

The new projection is included in the country’s first half budget revision due for adoption next week.

According to the draft revision obtained by MEDIAFAX Thursday, budget expenditure is expected to reach some RON200 billion this year, lower by RON714 million than previously estimated.

Romania’s 2010 budget projections were drafted based on an economic growth initially estimated at 1.3%, but current forecasts point to a contraction of 1.7% to 1.9%.

As a result, the government expects lower collections from corporate tax, personal income tax and excises, but it sees higher revenues from the value added tax, after a recent five-percentage-point increase of the tax level to 24%.

In addition, the country’s budget deficit will be formally revised to 6.8% of the gross domestic product from 5.9% of the GDP previously, as agreed with the International Monetary Fund and the European Commission.