March 28 (SeeNews) - Romania's January-February consolidated budget surplus declined to 0.05% of the country's gross domestic product (GDP) projected for 2017 from 0.10% of GDP a year earlier, the finance ministry said on Tuesday.
Romania's consolidated budget showed a surplus of 397.1 million lei ($95 million/87 million euro) in the first two months of the year, the ministry said in a press release.
Consolidated budget revenue fell 1.4% on the year to 34.9 billion lei, while spending fell 0.3% to 34.5 billion lei during the two months through February.
Revenue from tax increased 13.6% on the year, social security contributions grew 11.9%, while VAT proceeds were down 15.8% on the year in the first two months of 2017. The drop reflected a VAT cut from 20% to 19%, in effect from January.
Excises duties generated 5.3% lower revenues on the year in the first two months of 2017, negatively influenced by the lower excises on some energy products starting January 1, the ministry said.
Investments totalled 870 million lei in the first two months of the year, or 0.11% of GDP, compared to 2.7 billion lei in the same period of 2016.
Romania targets a consolidated budget gap of 2.99% of GDP on a cash basis in 2017, below the 3% EU ceiling. According to the EU's Maastricht treaty signed in 1992, the ratio of the annual general government deficit relative to GDP at market prices must not exceed 3% at the end of the preceding fiscal year.
Romania's consolidated budget showed a deficit equivalent to 2.41% of the projected GDP last year, compared to 10.3 billion lei shortfall, or 1.47% of GDP in 2015.
(1 euro=4.55 lei)