Romania’s budget deficit stood at 4.3 percent in 2011

Last year closed with a budgetary deficit of 4.3 percent of GDP, or RON 23.8 billion, said the Ministry of Public Finance.

Revenue to the consolidated budget increased y/y by 7.6 percent in nominal reaching RON 181 billion. This gain represents 0.3 percent of GDP.     

VAT revenue increased by 22 percent y/y, income tax gained 6 percent, while contributions to the social insurance increased by 11 percent.

In local administrations, revenue from taxes increased by 4.7 percent y/y, while non-fiscal revenue added 26 percent more to the budget.

A yearly increase of 12 percent was registered in sums reimbursed from the EU on the account of expenses made from public sources.

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Expenses from the consolidated budget increased in nominal terms by 1.5 percent last year due to a 47 percent increase of funding for EU projects and of interest payments that gained 22 percent y/y.

Goods and services expenses gained 7.5 percent y/y due to payments for medical services and pharmaceuticals. In local administration it gained to 13 percent as hospitals were taken over by local authorities.

Personnel expenses were cut by 10 percent y/y, subsidies lost 5 percent while expenses with social assistance reduced by 1 percent.

Investment expenses that include capital expenses and financing of projects increased by 12 percent y/y to RON 38 billion.

The budget of healthcare insurance collected RON 15 billion in 2011, receiving additional subsides of RON 2.2 billion from the state budget and 0.6 billion from the Ministry of Public Health.

Expenses of the national healthcare insurance fund totaled RON 17.8 billion, mostly going for pharmaceuticals and sanitary materials (RON 6.9 billion) and for medical services and service suppliers (RON 9.6 billion).

Ovidiu Posirca