October 3 (SeeNews) - Romania's consolidated budget showed a deficit equivalent to 2.1% of the projected 2019 gross domestic product (GDP) in the eight months through August, compared to a gap of 1.54% of GDP a year earlier, the finance ministry said on Tuesday.
The consolidated budget deficit totalled 21.9 billion lei ($5.05 billion/4.6 billion euro) at end-August, as revenue rose 11.9% year-on-year to 204.1 billion lei whereas spending increased 14.8% to 226.1 billion lei, the finance ministry said in a statement.
Labour costs were 20.9% higher due to wage increases financed from public funds.
Tax revenue rose by 14.3%, social security contributions grew 16.6% and VAT proceeds rose 11.6% in the review period.
Investments totalled 19 billion lei in January-August, up from 12.8 billion lei a year earlier.
Romania's 2019 budget projects economic growth of 5.5% and end-year deficit equivalent to 2.76% of GDP.
The country ended 2018 with a consolidated budget deficit of 2.88% of GDP.
(1 euro=4.7483 lei)