October 26 (SeeNews) - Romania's consolidated budget was in deficit equivalent to 3.04% of the gross domestic product (GDP) projected for 2022 at the end of September, compared to a budget gap of 3.75% of GDP a year earlier, the finance ministry said.
The consolidated budget deficit totalled 41.7 billion lei ($8.4 billion/8.5 billion euro) at the end of September, as revenue for the first nine months of 2022 rose 22.6% year-on-year to 331.48 billion lei, whereas spending increased by 18.6% to 373.18 billion lei, the finance ministry said in a statement on Tuesday.
Tax revenue rose by an annual 17.4% in the January-September period, social security contributions grew 9.7% and VAT proceeds jumped by 22.1%. Excise duty revenue rose 1.9%, mainly due to higher energy products excise.
Amounts reimbursed or granted by the EU totalled 26.67 billion lei in the first nine months of 2022, up 40.4% on the year. Investments totalled 33.07 billion lei, up 9.6% on the year.
On Tuesday, CFA Romania, an association of investment professionals, said Romania's 2022 budget gap is estimated to reach 6.1% of GDP.
In August, finance minister Adrian Caciu said Romania will meet its deficit target of 5.84% of the projected GDP in 2022, despite warnings from the Fiscal Council of overestimated revenues. According to Caciu, the finance ministry also maintains its forecast for 3.5% economic growth 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 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)