RSS
MFP: Romania closed 2015 with budget deficit of 1.47 percent of GDP
Romania's end-2015 general government deficit was 1.47 percent of the consolidated report on the implementation of the budget released by the Ministry of Public Finance (MFP).
The final figure follows an end-November surplus of 0.76pct of the GDP. The MFP says the December surge of expenditure came from investments from European and domestic reimbursable financing.
Financing from external grants advanced in 2015 by 62.4pct year-on-year.
Overall expenditure grew by 8pct in nominal terms and by 0.8pct of the GDP, to 243.9 billion lei. Investment expenditure, including capital expenditure and development programmes advanced from 32.7 billion lei in 2014 to 41.3 billion lei (5.9pct of GDP) last year. Staff costs were 3.2pct higher year-on-year. Interest expenses were 6.2pct lower, as yield on benchmark bonds declined.
Overall budget revenues amounted to 233.6 billion lei, or 33.1pct of the GDP, up by 9pct in nominal terms and by 1pct of the GDP on a 2014 basis. Collection increased from profit taxes (13pct), income taxes (12.4pct), VAT (12.3pct), non-tax revenues (12.8pct), and excises (8pct). Social insurance revenues saw a moderate increase, although employers' contribution were cut by 5pct, and contribution to the 2nd pillar of the pensions system were 0.5pct higher.
The European Union reimbursed payments of 17 billion lei, 49.3pct more than in 2014.
The 2014 budget deficit was 1.72pct of the GDP; in decreased by 1.1 billion lei in nominal terms in 2015, to 1.47pct of the GDP. The figure is within the 1.85pct of GDP target set in the 2015 tax and budget strategy, the MFP stressed.