RSS
Budget deficit incomes have grown by 11.8% in 10 months, while expenses went up by 18.1%
According to operational data, budget execution in the first 10 months of 2018 had a deficit of 20.9 billion lei, that is 2.2% of GDP, according to data published by the Public Finance Ministry on Thursday.
The budget deficit over January-October 2018 grew by 2.8% as GDP share and by 3.2 times in value against the same period of 2017, according to statements made by Eugen Teodorovici, the finance minister. The execution of the general consolidated budget in the first 10 months of 2017 ended with a deficit of 6.6 billion lei, that is 0.79% of GDP.
Budget incomes of 232.3 billion lei, representing 24.5% of GDP are 11.8% higher this year than last year.
“There are growth compared to last year in the case of contributions to social security (+37.8%) and from non fiscal incomes (+18.5%). As of February, incomes from social contributions were positively influenced by new legislative conditions about the transfer of contributions from the employer’s task to that of the employee, according to Government Decision 79/2017. As of May, there was an improvement in collecting VAT incomes, which grew by 9% compared to the same period of 2017, reaching 47.9 billion lei in the first 10 months of the ongoing year.”
Incomes from excises were 23.7 billion lei (2.5% of GDP), 7.9% higher against last year. Income taxes on property grew by 4.4%.
“There were income drops from income taxes by 26.1% on the background of the reduction of the income tax shares from 16% to 10%,as of January 1, 2018, a measure which was reflected in incomes as of February 2018. There was also a reduction by 45.5% compared to the same period of the previous year for the tax on the use of goods, or from the application of Decision 52/2017 on the return of special taxes for automobiles,” the Finance Ministry showed.
Amounts from the European Union for payments made were 11.3 billion lei. Expenses from the general budget were 253.2 billion lei in 10 months, 18.1% higher than in 2017.
“Personnel expenses are 25.4% higher than in the same period of 2017, an increase determined by salary increases granted by law 153/2017 on the salaries of personnel paid from public funds,” the Ministry explained.
Expenses with goods and services grew by 10.1% compared to 2017.
“Significant increases were registered with local budgets and with the single national health insurance fund and with budgets of public institutions financed from budget subsidies.”
Subsidies were by 10.4% higher than in 2017, at the same level as GDP percentage - 0.6%.
“Interest rates are by 25.5% higher than in the same period of 2017, representing 1.2% of GDP, as in October 2018 there was a top of interest rate payment, considering the cumulation of payment data for interest rates to benchmark type state bonds,” the Ministry showed.
Social security expenses grew by 12.1%, being influenced mainly by the 9% increase of the pension point, as of July 2017 and by 10% as of July 2018, becoming 1,100 lei, by the increase of social pensions from 520 to 640 lei, as well as the increase of ways of establishing the monthly payment for child raising and insertion stimulation.
Expenses for investments, which include capital expenses as well as those for development programs financed from domestic and foreign sources were of 20.6 billion lei, 40.2% higher than in the same period of last year.