Romania registered a deficit of 0.1 pct in the general budget in the five months of 2016

The execution of the general budget consolidated in the first five months of 2016 closed with a deficit of RON 780 million, respectively 0.10 percent from GDP, compared with the surplus of RON 6.32 billion registered in the same period in 2015.

The incomes from the general consolidated budget valued at RON 91.2 billion, representing 12 percent of GDP, with 2.1 lower in nominal terms compared with the same period of the last year.

Growth was registered compared with the same period of the last year in the incomes from income tax (11.3 percent), excises (7.4 percent), contributions to social insurance (6.1 percent), salaries and revenue taxes (1.7 percent) as well as the tax on goods utilization (13.3 percent), especially the taxes on gambling.

Regarding the incomes from VATs, these registered a drop compared with the same period of 2015, with 7.9 percent considering that were affected both by the standard VAT quota decrease from 24 percent to 20 percent starting with January 1, applied to the income from February, and by the introduction of a reduced quota to food of 9 percent, applied since June 1, 2015.

The costs for the general consolidated budget, valued at RON 92 billion, rose in nominal terms with 5.9 percent compared with the same period of the last year, but decreased with 0.1 percentage points as a share of GDP.

The costs with personnel increased with 9.8 percent compared with the same period of the last month, being determined mainly by the increase in the salaries given in the second part of 2015, respectively 12 percent for the personnel from the local public institutions, 25 percent for the personnel from public sanitary system and social assistance public system, 15 percent for the personnel from education, 10 percent for the personnel from budgetary system, exclusively health, education and social assistance, as well as the increase of the gross minimum salary in all the country with RON 75 starting with July 2015.

The costs for investments, which include capital costs, as well as the ones affiliated to the development programs financed by internal and external sources were RON 9 billion, respectively 1.2 percent from GDP, with almost 24.2 percent more than the same period of the last year.