August 27 (SeeNews) - Romania's consolidated budget was in deficit equivalent to 1.76% of the projected 2019 gross domestic product (GDP) in the first seven months, compared to a gap of 1.26% of GDP a year earlier, the finance ministry said on Tuesday.
The consolidated budget deficit totalled 18.14 billion lei ($4.2 billion/3.8 billion euro) as at end-July, as revenue rose 12% year-on-year to 180.1 billion lei whereas spending increased 14.7% to 198.2 billion lei, the finance ministry said in a statement.
Labour costs were 21.5% higher due to wage increases financed from public funds.
Tax revenue rose by 15.9%, social security contributions grew 16.6% and VAT proceeds rose 12% in the review period.
Investments totalled 15.8 billion lei in January-July, up from 10.9 billion lei a year earlier.
Economic growth of 5.5% and end-year deficit equivalent to 2.76% of GDP are projected in Romania's 2019 budget.
The country ended 2018 with a consolidated budget deficit of 2.88% of GDP.
(1 euro=4.7322 lei)