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Romania's 10-mo cons budget gap narrows to 4.03%/GDP

Romania's 10-mo cons budget gap narrows to 4.03%/GDP Romania budget deficit Source: Pixabay, SeeNews

BUCHAREST (Romania), November 25 (SeeNews) - Romania's consolidated budget was in deficit equivalent to 4.03% of the projected 2021 gross domestic product (GDP) in the first ten months of the year, compared to a gap of 7.01% of GDP in the like period of 2020, the finance ministry said on Thursday.

The government spent approximately 11.4 billion lei ($2.5 billion/2.3 billion euro) on extraordinary payments related to the Covid-19 pandemic in the ten months through October 2021, the finance ministry said in a statement.

The consolidated budget deficit amounted to 48 billion lei as at the end of October, as revenues rose 17.1% year-on-year to 308.6 billion lei and spending increased by 5.6% to 357 billion lei.

Tax revenues increased by an annual 15.7% in the January-October period, social security contributions grew 12.9% and VAT proceeds jumped by 35.2%. Excise duty collection was up 14.6% on year, driven by an annual 11.9% increase in tobacco excises and a 15.6% hike in energy excises.

Investments rose to 38.2 billion lei in the ten months through October, up 7.7% compared to the same period of 2020.

During the first ten months of 2021, Romania received 27 billion lei from the European Union, up 15.4% compared to the same period last year.

Romania plans a deficit equivalent to 7.16% of GDP and 7% 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= 4.9490 lei)