Romania's budget closes Q1 with surplus of 0.19 pct of GDP

The general consolidated budget closes the first quarter of the year with an excess of RON 1.5 billion, representing 0.19 percent of the GDP, half of the level from the first quarter of 2016, taking into account that the growth rate of expenses exceeded significantly the revenues increase, says the data of the Finance Ministry.

„The revenues of the consolidated budget, amount to RON 59.3 billion and represent 7.3 percent of the GDP, by 7.1 percent higher in nominal terms compared with the same period of 2016,” said the Finance Ministry.

The highest gains were registered in the first quarter in the revenues from the external trade and international transactions, with an increase of 18.2 percent, followed by the ones from salaries and incomes (15.8 percent), social contributions (14.8 percent) and revenues from capital (12.7 percent).

The revenues from taxes on goods and services and other taxes registered an increase by 60.2 percent, compared with the same period of 2016.

The growth was determined “mainly by the evolution of the revenues from the contribution from drugs, as well as for contracts financed from the Unique National Fund of health social insurances,” said the Ministry.

The revenues from VAT fell in the first quarter by 9.1 percent compared with the same period of 2016 due to the standard VAT quota reduction from 20 percent to 19 percent from January 1, which produced budget effects from February.

“However, the VAT collected went up by 2.5 percent in February 2016 and by 8.9 percent in March compared with 2016,” said the Ministry.

The expenses of the general budget were worth RON 58 billion in the first quarter, a growth by 10.4 percent or RON 5.46 billion compared with the same period of 2016.