May 28 (SeeNews) - Romania's consolidated budget was in deficit equivalent to 2.48% of the projected 2020 gross domestic product (GDP) in the first four months of the year, compared to a gap of 1.1% of GDP in the like period of 2019, the finance ministry said.
The consolidated budget deficit totalled 26.82 billion lei ($6.1 billion/5.5 billion euro) at the end of April, as revenue fell 1.3% year-on-year to 98.21 billion lei, whereas spending rose by 12.7% to 125.03 billion lei, the finance ministry said in a statement.
Tax revenue increased by an annual 7.9%, social security contributions grew 1.2% and VAT proceeds rose by 18.8% in the first four months of 2020.
Investments totalled 9.96 billion lei in January-April, up by 46.3% compared to the same period of 2019.
In April, Romania's finance ministry said that the consolidated budget deficit will widen to 6.7% of GDP this year, up from original projections for a gap of 3.59%, due to additional expenses related to the coronavirus crisis.
Romania closed 2019 with a consolidated budget deficit of 4.6% of GDP, exceeding the 4.4% ceiling set by the government and the EU's 3% threshold.
Earlier this month, the European Commission said that Romania needs to pursue fiscal policies aimed at narrowing the fiscal and external deficits, while still implementing all necessary measures to effectively address the pandemic and sustain the economy.
(1 euro=4.8432 lei)