March 3 (SeeNews) - Romania's consolidated budget in January showed a deficit equivalent to 0.33% of the gross domestic product (GDP) projected for 2021, compared to a deficit of 0.04% of GDP a year earlier, the finance ministry said on Wednesday.
The deficit is attributed mainly to an increase in VAT refunds by 2.29 billion lei ($568 million/470 million euro) and to expenditures aimed at curbing the economic impact of the coronavirus pandemic, the finance ministry said in a statement.
The government spent approximately 860 million lei on extraordinary payments related to the pandemic in January.
The consolidated budget deficit totalled 3.96 billion lei at the end of January, as revenue rose 5.9% year-on-year to 29.18 billion lei, whereas spending increased 17.4% to 32.87 billion lei.
Total tax revenue increased by an annual 6.8%, with VAT proceeds were 9.4% lower on the year in January. Amounts reimbursed or granted by the EU totalled 1.74 billion lei in January 2021, up 55.7% compared to January 2020.
Investments totalled 1.7 billion lei in January, up 29.9% compared to a year earlier.
The budget for 2021, which projects a deficit equivalent to 7.16% of GDP and 4.3% economic growth, was approved by parliament on Tuesday evening.
Romania closed 2020 with a consolidated budget deficit of 9.79%, more than double compared to the 4.6% gap in 2019.
(1 euro=4.8768 lei)