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Gov't deficit advances to 1.2 pct of GDP Jan.-April 2013

Deficit in the aggregate national budget of Romania advanced to 1.2 per cent of the Gross Domestic Product (GDP) - RON 7.5 billion - at the end of the first four months of 2013, after Q1 ended on a deficit of 0.67 per cent of the GDP, according to data released by the Finance Ministry.

The same data indicate that this April, because of advance payment of the April wages, the deficit widened, with its 0.2 percentage points influence having a seasonal character that will be made up for in May. Had the advance payment not occurred, the deficit in the first four months of the year would have been 1 per cent of the GDP, compared with 0.85 per cent of the GDP in the similar period of 2012.

Reflected in this deficit is also the restoration of the public pay, pension indexation, the returning of the healthcare contributions to pensioners, an increase in the minimum wage as well as a cut in arrears.

Government's aggregate revenue of nearly RON 65 billion, or 10.4 per cent of the GDP, was 4.3 per cent higher in nominal terms than the revenue of the similar period of the year before. Income tax and social security contributions increased by 11 per cent a 5.9 per cent, respectively, as a result of pay increases that ensued the public pay restoration measures and an increase in the minimum wages as from February 1.

VAT revenue was up 6 per cent from the first four months of 2012, with the positive development being ascribed to the revenue having not been affected by the measure of VAT payment upon billing.

Excise duties went up 13 per cent as a result of increase in excise duties on diesel fuel and changes in the exchange rate against which the duties had been computed and also as a result of the implementation of administrative reforms to improve the collection of such duties.

Profit tax collection this April was up 7.9 per cent from April 2012.


Trade balance deficit to reach 10,420 bn euros in 2013 - CNP forecast


Romania's trade balance deficit (FOB - CIF) will constantly go up over the next three years, from 9.628 billion euros in 2012 to 10.420 billion euros in 2013, and to 14.670 billion euros in 2016, according to the 2013 - 2016 medium-term Spring Forecast published by the National Prognosis Commission (CNP).

Exports will rise this year to 46.725 billion euros (plus 3.7%) from 45.056 billion euros last year, and in 2016 they will reach 56.470 billion euros. Imports (FOB) will be worth 54.790 billion euros this year (plus 4.5%) from 52.430 billion euros last year, and they will reach 68.215 billion euros in 2016.

The current account deficit will decrease to 3.8% of GDP this year, from 3.9% of GDP last year. In 2014, the current account deficit will reach 4.3% of GDP, in 2015 it will fall to 4.2% of GDP, and in 2016 it will stand at 4.1% of GDP.