2015 budget implementation stays within BNR deficit target

The general consolidated budget ended last year with a revenue of RON 233.6 billion, up 9 percent over 2014, while expenses rose 8 percent, to RON 243.9 billion, resulting in a deficit of RON 10.3 billion, according to Mediafax newswire. The deficit, representing 1.47 percent of GDP, has kept within the National Bank of Romania (BNR) target of 1.85 percent.

Compared to the previous year, the deficit was reduced from 1.72 percent to 1.47 percent of GDP, falling RON 1.1 billion in nominal terms.

Consolidated general government revenues accounted for 33.1 percent of GDP, recording an increase of one percentage point as a share of GDP.

There were increases in profit tax receipts (13 percent), income tax (12.4 percent), VAT (12.3 percent), non-tax revenues (12 percent) and excise duties (8 percent).

Local governments registered increases in tax on goods by 4.8 percent, 4.1 percent in non-tax revenues and 1.5 percent in property taxes.

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The amounts received from the European Union were RON 17 billion, 49.3 percent higher than 2014.

Consolidated general government expenditures reached RON 243.9 billion, rising in nominal terms by 8 percent over the previous year and 0.8 percentage points to GDP.

Staff costs increased by 3.2 percent as a result of wage increases in local government and health sector and in education. However, interest expenses decreased by 6.2 percent on the back of easing of yields at auctions of benchmark bond issues. Spending on projects funded by external grants from the previous year increased 62.4 percent.

Investment expenditures, including capital expenditures and those related development programs financed from internal and external sources were RON 41.3 billion, representing 5.9 percent of GDP, from RON 32.7 billion in 2014.

Investment expenditures totaled RON 15.1 billion in December, of which RON 7 billion to support projects with European financing, RON 87.2 million for projects with repayable funding and RON 8 billion for the capital expenditure financed projects.

Moreover, the amount allocated to support farmers in the purchase of diesel fuel rose in December by 40 percent, the Ministry of Agriculture allocating an additional RON 106 million.

Nataia Martian