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10-month general consolidated budget deficit at 1.21 pct of GDP
The general consolidated budget deficit in the 10 months of the year amounted to 7.6 billion lei or 1.21 percent of gross domestic product, thus being within the limits of the budgetary policy targets set for this year, reveals the budget implementation for October published by the Public Finances Ministry on its website.
The primary balance relevant to Jan.-Oct. is positive, at 0.32 percent of GDP, which speaks of prudent, sustainable budget policy, the ministry said.
The October budget implementation recorded 577.8 million lei in surplus mainly as a result of the profit tax collections for the third quarter.
The general consolidated budget revenues totalling 166.7 billion lei, accounting for 26.7 percent of GDP were by 4.6 percent higher in nominal terms from the 10 months of 2012, while the profit tax collections were up by 1.5 percent as compared to the same span last year.
The income tax revenues were up 7.8 percent amid the increased salary incomes, as a result of raising the public workers' pay back to the pre-July 2010 austerity cuts, the increased pension grade and the rise in the minimum salary from this Feb. 1 and July 1 respectively.
The value-added tax (VAT) revenues were by 4.2 percent higher in the 10 months this year as compared to the last, as the VAT collections increased by 4 percent, while VAT repayments were by 4.6 percent higher.
Excise taxes climbed 3.4 percent as a result of the hiked excise on diesel fuel, beer and cigarettes as well as of the influence of the exchange rate applied on the payment of excise taxes.
The amounts repaid by the European Union for the payments already made by Bucharest kept the upward trend, being by 18.9 percent higher than in the prior month.
The general consolidated budget expenditure totalled 174.3 billion lei or 27.9 percent of GDP, being up by 4.6 percent from the same period last year in nominal terms, while having dropped by 0.5 percent as GDP share.
The investment expenditure, also including the capital expenditure as well as the expenditure relevant to the development programmes funded by internal and external sources stood at 22.6 billion lei or 3.6 percent of GDP, the ministry said on its website.
(1 euro=4.44 lei)