August 25 (SeeNews) - Romania's consolidated budget posted a deficit of 0.2% of GDP in the first seven months of the year, the finance ministry said.
Romania's consolidated budget deficit stood at 1.74 billion lei ($440 million/390 million euro) in the January-July period, as revenue fell 2.4% on the year to 129.6 billion lei, while spending rose 4.7% to 131.4 billion lei.
According to previous data released by the finance ministry, Romania posted a 7.4 billion lei surplus or 1.06% of GDP in the first seven months of 2015.
In the first seven months of 2016, revenues from income tax increased 10.5%, excise duties climbed 7.1%, and social security contributions increased 6.6%. On the other hand, VAT proceeds were down 10.1%, reflecting a VAT cut from 24% to 20% starting January 1 and to 9% for some food items starting June 2015.
Investments rose by an annual 2.7% to 12.8 billion lei, or 1.7% of GDP, in the first seven months of the year.
In the January-June period, the country posted a budget deficit of 0.5% of GDP.
Romania targets a consolidated budget gap of 2.95% of GDP on a cash basis in 2016, below the 3% EU ceiling. The country's consolidated budget for 2015 showed a deficit of 1.47% of GDP, below the 1.85% limit set in the fiscal strategy for 2015.
(1 euro=4.4549 lei)