October 26 (SeeNews) - Romania's consolidated budget was in deficit equivalent to 3.77% of the projected 2021 gross domestic product (GDP) in the first nine months of the year, compared to a gap of 6.37% of GDP in the like period of 2020, the finance ministry said on Tuesday.
The government spent approximately 10.64 billion lei ($2.5 billion/2.15 billion euro) on extraordinary payments related to the Covid-19 pandemic in the nine months through September 2021, the finance ministry said in a statement.
The consolidated budget deficit amounted to 44.3 billion lei as at the end of September, as revenue rose 18.7% year-on-year to 270.4 billion lei, while spending increased by 6.7% to 315 billion lei, the finance ministry said in a statement.
Tax revenue increased by an annual 16% in the January-September period of 2021, social security contributions grew 14% and VAT proceeds jumped by 39%. Excise duty collection was up 17.2% on year, driven by an annual 13.8% increase in tobacco excises and a 18.6% hike in energy excises.
Investments rose to 33.7 billion lei in the nine months through September, up 13.4% compared to the same period of 2020.
During the first nine months of 2021, Romania received 19 billion lei from the European Union, up 18.4% 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= 4.9472 lei)