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Finances: January incomes 5% lower than in January 2016
Incomes of the general consolidated budget are 5% lower in January 2017 compared to January 2016, as VAT incomes were 20% lower, according to sources close to the Finance Ministry.
VAT incomes represent a quarter of general consolidated budget incomes in January 2017 against January 2015, as VAT incomes were 20% lower, Ziarul Financial writes.
The government provided in the budget law, a budget income increase of 14% in 2017 compared to the previous year.
Another unpleasant surprise is the 10% increase of expenses with salaries in conditions of the new law approved at the end of 2016, even without new measures of salary increases in local administration which came into force on February 1, 2017. Moreover, salary expenses in January multiplied by 12 is already over the limit of 63.8 billion lei, the level of salaries approved by the budget law.
However, January execution will end with minor excess of 0.1%-0.2% of GDP, as a result of drastic reduction of investments.
Without an approved budget, all expenses, expect of budget salaries, were made by allocating 1/12 of 2016 expenses. The law must be observed according to the law, whether there is money or not.
The government cannot rectify the budget earlier than 6 months of execution, unless too sudden income drops appear.
The January VAT drop could be explained with high expenses in December 2015, which led to very good VAT incomes in January 2016. In January 2016 budget incomes were of 18.3 billion lei, 4% more than in 2015.
VAT incomes in January 2017 represent December 2016 sales, when VAT was 20% compared to 24% in 2015.
The Finance Ministry announces incomes of the previous month on the 25th of the present month.