Romania Eyes 16.6% Higher Revenue From VAT In 2011 - Draft Budget

The document, obtained by MEDIAFAX, indicates the authorities estimate a 16.7% increase in the revenue from the value added tax to 43.1 billion lei (EUR1=RON4.2779) in 2011, from RON36.9 billion predicted for this year.

The tax on profit is expected to bring the government RON11.5 billion next year, up from RON10.7 billion in 2010. In addition, the tax on income is forecast to bring in RON18.5 billion, compared with RON17.9 billion estimated for 2010.

Romania is likely to cash in RON16.3 billion from excise duties in 2011, up from RON15.4 billion in 2010, according to the document.

By contrast, the state expects to lose money from the tax on property transfers, from housing sales, writing off receivables, as well as from dividends and capital income.

Personnel costs are estimated to increase to RON15.5 billion in 2011, from RON14.7 billion this year, while the expenditure with goods and services are seen reaching RON3.8 billion, slightly up compared with RON3.7 billion envisaged in 2010.

The costs with social assistance are expected to drop to RON14.2 billion, from RON18.4 billion this year.

Romania's 2011 state budget envisages total revenue of RON78.6 billion, while the expenditure is estimated at RON111.4 billion.

According to the country's fiscal strategy for 2011-2013, the overall revenues to the general consolidated budget are likely to reach RON176.35 billion in 2010, while total spending is seen at RON200.3 billion.

The budget deficit is forecast at 4.4% of the gross domestic product, substantially lower compared with 6.8% of GDP targeted for 2010.

If approved by the government, the 2011 budget draft will be sent to parliament for debates.

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