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Budget excess in January
The general consolidated budget registered excess of 1.5 billion lei in January, because of higher incomes from VAT and excises, 57% smaller payment expenses in the investment segment, according to Finance Ministry data.Expenses of capital amounted to 312 million lei in January, on the drop by 412 million lei, from 725 million lei in January 2013.
The Finance Ministry points out that overall expenses for investments, which include expenses of capital and the ones for development programs financed from domestic and foreign sources were of 674.1 million lei, that is 0.1% of GDP.
In the first month of 2013, the ministry reported overall expenses of 1 billion lei for investments (0.16% of GDP) which means that projects with foreign and domestic financing only partially compensated dropping budget expenses.
The difference for capital expenses comes from the National Company of highways and national roads which spent only 0.5 million lei in January compared to 449 million lei in 2013.Incomes of the general consolidated budget of 17.6 billion lei – 2.7% of GDP- were 10.2% higher in nominal terms than in the same period of last year.Significant increases were recorded for incomes from tax on profit (+27%) to 247 million lei and VAT (+17.8%) to 5.02 billion lei, about 30% of total.At the same time gains from income taxes dropped by 13% to 1.98 billion lei.
Social security incomes grew by 1.2% to 4.74 billion lei, due to the growth of salary incomes following the increase of the lowest salary as of February 1, 2013 and July 1, 2013. The money returned by EU for payments made grew by 204% to 676 million lei, compared to the same period of the previous year. Mention should be made that only money returned by EU for projects benefitting public institutions are registered in the general consolidated budget.
Increases were recorded for several chapters except for investments. General consolidated budget expenses of 16.1 billion lei grew in nominal terms by 7.8%, maintaining at 2.4% of GDP.
The deficit target for this year was negotiated with international financial institutions at 2.2% if GDP.
According to the prognosis published by EC on Tuesday, Romania will have an economic growth of 2.3% this year, with deflator of 2.9% which means GDP of 660 billion lei.