July 27 (SeeNews) - Romania's consolidated budget was in deficit equivalent to 2.96% of the projected 2021 gross domestic product (GDP) in the first half of the year, compared to a gap of 4.17% of GDP in the like period of 2020, the finance ministry said on Tuesday.
The government spent approximately 8.11 billion lei ($1.94 billion/1.65 billion euro) on extraordinary payments related to the Covid-19 pandemic in the six months through June 2021, the finance ministry said in a statement.
The consolidated budget deficit amounted to 33.8 billion lei as at the end of June, as revenue rose 20.6% year-on-year to 146 billion lei, while spending increased by 9.8% to 210 billion lei, the finance ministry said in a statement.
Tax revenue increased by an annual 16.9% in the January-June period of 2021, social security contributions grew 13.8% and VAT proceeds jumped by 41.5%. Excise duty collection was up 21.2% on year, driven by an annual 18.7% increase in tobacco excises and by a 22% hike in energy excises.
Investments reached 21.35 billion lei in the six months through June, up 32.4% compared to the same period of 2020.
During the first half of 2021, Romania received 12.5 billion lei from the European Union, up 38.9% compared to the same period last year.
Romania plans a deficit equivalent to 7.16% of GDP and 4.3% economic growth in the 2021 state budget.
The country closed 2020 with a consolidated budget deficit equivalent to 9.79% of estimated GDP, compared to a 4.6% gap in 2019.
(1 euro= 4.9208 lei)