RSS
The budgetary deficit of 2.41% of GDP in 2016 , higher with one percentage point against 2015
The execution of the general consolidated budget for 2016 finalised with a deficit of 18.3 billion lei, 2.41% of GDP respectively, up by almost one percentage point against the negative balance of 1.47% of GDP in 2015.
According to the report regarding the macroeconomic situation of 2017 and its projection for 2018 -2020 published on Monday on the site of the ministry of public finances, the income of the general consolidated budget worth 223.7 billion lei, representing 29.5% of GDP there were 4.3% smaller in nominal terms against the previous year. The income collected from the domestic economy (without the funds from the European Union before and after the accession)was worth 216.9 billion lei (28.6% of GDP) with 0.3% bigger than the previous year.
There was growth against 2015 for collections for the profit tax (+11.7%) contributions to social insurance (+6.3%), salary and income taxes (+4.2%) as well as excises (+3.6%).
As regards the collections of VAT there were recorded a drop against 2015 by 9.6% as both the reduction of the standard quota of VAT from 24% to 20% starting with 1 January 2016 which was reflected in the collections starting withFebruary and the introduction of a reduced quota for food of 9% applied starting with 1 June 2015.
At the level of local administrations there was growth against the previous year for non-fiscal income with 13.9% for taxes and real estate taxes with 6.1% and the tax forgoods use with 1.1%.
The expenses of the general consolidated budget worth 242 billion lei were reduced in nominal terms with 0.6% against the previous year and with 2.3 percentage points as share in GDP.
The expenses with personnel increased by 9.5% against the previous year being determined, mainly, by the salary increase offered during the second part of 2015 and the increase of the minimum gross salary at the level of the country. The salary increase offered in the second part of 2015 were of 12% for the personnel in the local public institutions, 25% for the personnel in the health public system and for the personnel in the social assistance public system, 5% starting with September 2015 and 15% starting with December 2015 for the personnel in education, 10% for the personnel in the budgetary system excluding health, education and social assistance. The increase of the minimum gross salary was of 75 lei starting with 1 July 2015, from 975 lei to 1,050 lei and with 200 lei starting with 1 May 2016 from 1,050 lei to 1,250 lei.
Expenses for investment which include capital expenditure, as well as those offered to development programmes financed from domestic and foreign sources, were 29.5 billion lei, 3.9% of GDP respectively.
At the beginning of this year, the European Commission estimated that in 2016 the budgetary deficit in ESA terms would increase up to 3% of GDP, the limit accepted by the Maastricht Treaty. The state budget for last year was built on a deficit of 2.95% of GDP.