The consolidated budget execution for the first six months of 2011 has been finalized with a RON 11 billion deficit, respectively 2,1 percent of GDP, under the deficit target of RON 12,6 billion stipulated in the Stand-by arrangement with the IMF, according to official data from the Romanian Ministry of Finance.
Improved budget revenues
Revenues receipts to the general consolidated budget totaled RON 85 billion, a 9,6 percent increase to the previous year, due to increased receipts for the VAT (31 percent), excises (27 percent) and capital revenues (59 percent).
Receipts from social insurance contributions have increased by 4,7 percent to 2010 values, while receipts from the profit tax have also increased by 1,5 percent to the first semester of 2010.
The receipts gap from non-fiscal revenues has reduced by 8 percent, compared to 2010 value. The sums received from the EU in account for made payments has increased by 16 percent compared to the first semester of 2010.
The consolidated general budget expenses have totaled RON 96 billion, recording a nominal increase of 0,7 percent to the similar period of 2010 value, as a result of rising co-financing expenses for projects with grant financing, but recorded a 1 percent reduction in the GDP.
Significant increase in EU financed projects and slashed personnel expenditures
Payments for EU financed projects has increased by 61 percent, to 2010 values. Expenses for goods and services have risen by 14 percent to values of 2010.
Personnel expenses were reduced by 19 percent, subsidies were slashed by 19 percent and social assistance expenses were reduced by 2 percent.
Interest expenses have risen by 29 percent due to additional costs for financing the current budget deficits.
Investment expenses including capital and development programmes financed from internal or external sources have reached RON 15 billion for the first semester of 2011, an increase from the RON 12 billion recorded in the first six months of 2010.