RSS
Consolidated budget for the first half of 2016 shows a deficit of 0.5 percent of GDP
Romania's consolidated budget for the first half of 2016 shows a deficit of 3.85 billion lei, or 0.5 percent of the gross domestic product, below the target of 1.9pct of GDP, the Ministry of Public Finance announced on Monday.
The budget revenue amounted to 108.4 billion lei, or 14.3pct of GDP, with collection up 12.5pct year on year from profit taxes, 12.5pct from excise, 6.3pct from social contribution, 2.3pct from salary taxes, and 15.5pct from property taxes. The collection was lower YOY by 9.5pct from VAT, as this tax was cut from 24pct to 20pct on 1 January, and a lower VAT of 9pct was applied on food since 1 June.
Expenditure for goods and services advanced by 1.5pct on a H1 2015 basis, and for social assistance by 8pct YOY, especially owing to the 5pct increase of the pension point on 1 January. Investment expenditure amounted to 11 billion lei, i.e. 1.5pct of GDP, up by 15pct YOY.
The first half of 2015 had ended with a budget surplus of 4.2 billion lei, or 0.6 pct of GDP.