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The deficit of the consolidated general budget- 0.28% of GDP after the first four months

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The budgetary deficit was, after the four months of the year at 0.28% of GDP against 1.19% of GDP for the same period of 2013, according to the data published on Monday by the ministry of public finances (MFP).

 

The budgetary execution for the first four months of 2014 confirms the continuation of the process of reduction of the budgetary deficit, this being 0.28% of GDP against 1.19% of GDP for the same period of the previous year’ stated the ministry of public finances.

 

At the end of April, a positive primary balance of 0.36% of GDP against a negative primary balance of 0.49% of GDP for the same period of the previous year ( primary balance of the consolidated general budget represents the balance of the general consolidated budget out of which the payments for interest rates corresponding to the public debt were taken).

 

The income of the general consolidated budget worth 67.85 billion lei representing 10.2% of GDP were 4.4% higher in nominal terms against the same period of 2013. There were increases against the same period of the previous year for collections of the excises ( by 1.013 billion lei) for the tax for profit ( 647.8 million lei), social insurance contributions (582.4 million lei) and VAT ( 428.6 million lei).

At the level of local administrations there were increases against the previous year for taxes and taxes on property by 5.6%, taxes for the use of goods by 4.1%and non-fiscal income (4.5%).

 

The expenses of the general consolidated budget worth 69.73 billion lei were reduced in nominal terms by 3.8% against the same period of the previous year and by 1.0% percentage points respectively as share in the GDP.The expenses with personnel dropped by 4.4% as a result of the fact that in April 2013 there were payments for salary for April for some categories of employees in the public sector which should have been paid in May, but as a result of the Eastern period were given in advance.

 

The expenses with goods and services increased by 7.3% against the same period of the previous year, the increase being for the national fund of social health insurance, due to the payment of debt to the pharma suppliers, as a result of the implementation of the law no.72/2013 through which the directive no.7/2011 was put into practice in the Romanian legislation,law regarding the combatting of the delay in commercial payments as well as the payment of the medical services in hospitals.

 

A significant reduction of expenditure with interest by 3.1% due to the reduction of the yield for the bids to bonds emissions,benchmark type.Expenditure for investments which include capital expenses, as well as those corresponding to the programs of development financed from domestic and foreign sources were worth 5.9 billion lei, 0.9% of the GDP.

 

For 2014, the Romanian authorities and IMF agreed for a budgetary deficit of 2.2% of GDP both for cash and ESA methodology of the EU. Romania ended last year with a deficit of the general consolidated budget of 2.5% of GDP.

 

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