RSS
The deficit of the general consolidated budget was reduced to 0.14% of GDP over Q1 of 2014
The budget deficit after Q1 of this year was reduced at 0.14% of GDP, against 0.67% 0f GDP over the same period of last year, according to the information published on Friday by the Ministry of Public Finances (MFP).
‘At the end of Q1 2014 there is a positive balance of 0.23% of GDP against a primary negative balance of 0.18% for Q1 2013 ( the primary balance of the general consolidated budget is the balance of the general consolidated budget out of which the payments of the interest rates for the public debt). The deficit of the general consolidated budget for the first three months of the year ensure the meeting of the targets approved with the international financial bodies’ MFP says.
The return of the general consolidated budget worth 48.8 billion lei, representing 7.4% of GDP was by 3.8% higher in nominal terms against the same period of the previous year. They recorded increase against the same period of the previous year for the collections of the tax on profit (+235 million lei) excises (+639 million lei), contributions to social insurance (+587 million lei).
According to MFP, the return to VAT dropped against the same period of the previous year by 0.5%, as the collections of VAT increased by 3.2% while the tax recoveries were 11%higher.At the level of local authorities were recorded, growths against the previous year to taxes and property taxes by 11.7%, taxes for the use of goods by 6.9% and non-fiscal incomes by 6.7%.
The expenses of the general consolidated budget worth 49.7 billion lei, were reduced in nominal terms by 2.9% against the same period of the previous year, and by 0.6% percentage points as a share of GDP.
In the mentioned period, increase to personnel expenditure was recorded (+2.6%) mainly as a result of the payment of the bonds established through judicial decisions and the payment of the rights for uniforms and equipment for the personnel in the sector of public order.
According to MFP, the expenses with goods and services increased by 4% against the same period of the previous year, the increase for the national fund of social insurance, due to the payment of debts to the medicines suppliers, as a result of the implementation of the law no.72/2013 through which the Directive no7/2011 regarding the combatting of the delay in the commercial payments was harmonised, as well as the payments of the medical services made in hospitals.
At the same time, a significant reduction of the expenses with interest was made by 20.4% due to the decrease of the yield for the bids of bonds emissions benchmark type.
The expenses for investments, which include capital expenditure, as well as those belonging to the development programmes financed by domestic and external sources, were 3.3billion lei, 0.5% of the GDP respectively..
For 2014, the Romanian authorities and the IMF agreed on a budgetary deficit of 2.2% of GDP both for the cash methodology and the ESA methodology of the EU. Romania had a deficit of the general consolidated budget of 2.5% of the GDP at the end of last year.