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Budget deficit reaches 4.09 pct of GDP, in eight months
The general consolidated government budget in the first eight months of the year ended with a deficit of 20.9 billion lei, representing 4.09 percent of the GDP, an increase compared to the first first seven months of 2010, when it totaled 20 billion lei (3.9 percent of GDP), according to data published Wednesday by the Ministry of Public Finance (MPF).
The growth pace of the deficit recorded in August fell to 0.2 percent of GDP compared to 0.3 percent recorded in June and with 0.4 percent in July.
According to MPF data, the revenues to the general consolidated budget amount stood at 106.2 billion lei (some 25 billion euros), 2.9 percent more in nominal value, compared to the corresponding period of the previous year. Revenues increased primarily at the value added tax chapter, up 4.5 percent compared to same period of the previous year and for excise duties receipts, higher by 11.7 percent at the level of the general consolidated budget.
VAT revenues were higher by 829 million lei (29.5 percent) compared to the average in the first seven months of the year, following the increased rate from 19 to 24 percent and respectively with 1.254 billion lei compared to the similar period of the previous year.
MFF pointed out that in the aforementioned period important gaps remained as for the tax profit (minus 2.0 percent), revenue tax (minus 5.1 percent), as well as social security contributions (minus 5.7 percent).
In contrast, the revenues derived from non-fiscal income rose, as well as from the amounts returned by the European Commission on the account of the payments made for projects with European financing. Capital revenues advanced by 65.8 percent from the similar period a year earlier.
In respect of the expenditure of the general consolidated budget it stood at 127.2 billion lei, 1.3 percent up in nominal terms from the same period of the previous year, with the note that the monthly payments were reduced by 22.6 percent from July, Agerpres informs. As well, social security spending advanced 10.1 percent from the same period a year earlier.Spending for investments were in the first eight months of 16.9 billion lei, respectively 3.3 percent of the GDP.