RSS
The minister of finances: the budgetary deficit went up to 6 billion lei – 0.65% of GDP – in the first 4 months of 2018
The general consolidated budget execution for the first four months of 2018 closed down with a deficit of 6.05 billion lei, namely 0.65% of GDP, shows a press release sent on Friday by the ministry of public finances (MFP). Three months after, the deficit was 4.45 billion lei (0.48% of GDP).
‘The income in the general consolidated budget worth 89.6 billion lei, representing 9.6% of GDP is 11.8% higher, in nominal terms, against the same period of the previous year’ the press release says.
According to MFP,there is growth against the previous year in the case of collections from insurance contributions (+33.6%) and non-fiscal income (+13.9%).. ‘ Starting with February, the collections from social contributions were positively influenced by the new legislative conditions regarding the transfer of contributions from the employer to the employee, regulated through OUG no.79/2017’ the Finances say.
The income from VAT in the first four months were 17.5 billion lei which is a growth of1.1% against the similar period of the previous year, and the income from excises was worth 8.8 billion lei (0.9% of GDP)with 14.7% higher than the similar period of the previous year.
Similarly,the collections from taxes and tax on property increased with 6.7% against the same period of 2017.
There were also drops in collection from salary tax and income with 18.2% due to the reduction, starting with January 2018 of the quota of the income tax from 16% to 10%, measure which reflected in collections starting with February 2018’. Similarly, there is a diminution with 14.4% against the same period of the previous year and the tax for the use of goods, the authorisation of the use of goods or deployment of activities, ‘ as a result of the OUG no.52/2017 regarding the restitution of the sums representing the special tax for cars, pollution tax for cars, tax for polluting emissions coming from cars and the environment seal for cars’ MFP says.
The sums from the EU in the accounts for payments are 5.02 billion lei.
‘On the other hand, the expenses of the general consolidated budget are 95.6 billion lei, with 21.5% higher than the same period of the previous year. The expenses with personnel are with 20.4% higher than the same period of the previous year, the growth being determined – according to the finances – by ‘ the salary increases offered in 2017, as well as due to the increase of salaries in the budgetary sector, as a result of the application of law no.153/2017 regarding the salary of the personnel paid from public funds’.
The expenses with goods and services increased by 12.2% against the same period of the previous year. Significant growth is recorded both in local budgets and the budget of the single national fund for social insurance for health and the budgets of the public institutins financed from their own income and budgetary subsidies.
Subsidies offered in the first four months of 2018 are growing by 26.8% against the same period of last year. ‘The growth is determined, mainly, by the payments made for the support of the agricultural producres and the subsidies offered for the support of public railway transport and the underground transport’ MFP says.
The interest is with 56.2% higher than at the same period of last year, namely 0.5% of GDP as ‘ in April 2018 there was a peak of payment for the interests, taking into consideration the cumulation of the payment deadlines of the interest for several bonds benchmark type,situation which in 2017 was reflected in the budgetary execution of June’ the press release says.
Expenses with social assistance increased against the previous year with 10.8% being influenced,mainly, by the increase with 9% of the pension indicator starting with 1 July 2017, reaching 1,000 lei, the increase and the alteration of the way of establishing the monthly aid for child support and the insertion bonus.
Expenses for investments which include capital expenses as well as those belonging to the programmes for the development finances from domestic and external sources were 5.9 billion lei, twice higher than the same period of last year’ the ministry of finances said.