August 1 (SeeNews) - Romania's consolidated budget was in deficit equivalent to 1.94% of the projected 2019 gross domestic product (GDP) in the first six months, wider than the 1.4% gap in January-May, the finance ministry said on Thursday.
The consolidated budget deficit totalled 19.96 billion lei ($4.7 billion/4.2 billion euro) as at end-June, as revenue rose 12.6% year-on-year to 148.6 billion lei whereas spending increased 14.7% to 168.6 billion lei, the finance ministry said in a statement.
Labour costs were 23.4% higher due to wage increases financed from public funds.
Non-tax revenue increased by 28% year-on-year, social security contributions grew 17.1% and VAT proceeds rose 12.6% in the review period.
Investments totalled 12.3 billion lei in January-June, up from 9.1 billion lei in the comparable period a year earlier.
The government projects economic growth of 5.5% and end-year budget deficit equivalent to 2.76% of GDP in the 2019 state budget.
Romania ended 2018 with a consolidated budget deficit of 2.88% of GDP.
(1 euro= 4.73262 lei)