Romania’s budget surplus reaches 0.92 pct of GDP in August 2015

Romania’s Ministry of Public Finance (MFP) registered a budget surplus of RON 6.5 billion (EUR 1.47 billion) at the end of eight months, the equivalent of 0.92 percent of GDP against a deficit of RON 1.6 billion (EUR 362.6 million), the equivalent of -0.24 percent of GDP as at the end of the same period of 2014, the MFP announced.

The consolidated general government revenues totalled RON 150 billion, representing 21.4 percent of GDP, 9.7 percent higher in nominal terms compared to the same period last year, while its share in GDP was 0.9 percentage points higher.

Compared to the same period last year, there were increases in VAT receipts (up 15 percent), income tax (13.5 percent), profit tax (11 percent), non-tax revenues (18.5 percent) and excises (8.2 percent). Receipts from social insurance contributions decreased by 1.5 percent over the previous year, influenced by the reduction by 5 percentage points due to the state by employers’ contributions, but also the increase in contribution paid to the private pension funds (Pillar II ) by 0.5 percentage points in 2015 compared to 2014.

Compared with the same period in 2014, revenue in the segment of local governments increased for taxes on property (3 percent), taxes on use of goods (by 6.2 percent) and non-tax revenues (2 percent).

The consolidated budget expenditures, amounting to RON 143.6 billion, increased in nominal terms by 3.8 percent compared to the same period of the previous year, but decreased by 0.3 percentage points to GDP.

A significant reduction was recorded for interest costs (down 7 percent), due to the seasonality of payments and falling yields on government securities. In parallel, there has been a significant increase of 36.8 percent over the same period last year, on expenses incurred for projects funded by external grants.

The amount of capital expenditures, including capital expenditures and the related development programs financed from internal and external sources, was RON 15.1 billion, the equivalent of 2.2 percent of GDP, in nominal terms 7.4 percent more than the same period last year.