Romania's 10-mo cons budget gap narrows to 3.37%/GDP

Consolidated budget deficit totalled 47.98 billion lei ($10.1 billion/9.7 billion euro) at the end of October, as revenue rose 22.7% year-on-year in the ten months to end-October to 378.8 billion lei, whereas spending increased by 19.4% to 426 billion lei, the finance ministry said in a statement.

Tax revenue rose by an annual 17.7% in the January-September period, social security contributions grew 10% and VAT proceeds jumped by 19.6%. Excise duty revenue grew by 3.5%, mainly due to higher revenue from energy products excise.

Amounts reimbursed or granted by the EU totalled 34.78 billion lei in the first ten months of 2022, up 41.1% on the year. Investments amounted to 47.56 billion lei, up 24.5% on the year.

Earlier this month, the government lowered its 2022 budget deficit target to 5.74%/GDP from previously estimated 5.84%, in a revision of the state budget for this year.

Romania closed 2021 with a consolidated budget deficit of 6.72%, compared to a budget gap of 9.61% in 2020.

Romania is in an excessive deficits procedure by the European Commission applicable since April 2020 because it has exceeded the EU's 3% budget deficit threshold set by the Maastricht Treaty.

(1 euro=4.9038 lei)