December 30 (SeeNews) - Romania's consolidated budget showed a deficit equivalent to 3.56% of the projected 2019 gross domestic product (GDP) in the eleven months through November, compared to a gap of 2.7% of GDP in the like period a year earlier, the finance ministry said on Monday.
The consolidated budget deficit totalled 37.05 billion lei ($8.7 billion/7.7 billion euro) at the end of November, as revenue rose 10.7% year-on-year to 289.4 billion lei, whereas spending increased 13.5% to 326.4 billion lei, the finance ministry said in a statement.
Labour costs were 19.1% higher due to wage increases financed from public funds.
Tax revenue rose by 12.5%, social security contributions grew 14.2% and VAT proceeds increased 9.9% in the review period.
Investments totalled 33.2 billion lei in January-November, up 26.3% compared to a year earlier.
In November, the finance ministry said that the country's consolidated budget deficit target for 2019 was raised to 4.3% of GDP from an initial estimate of 2.76%, above the EU's recommended ceiling of 3%. The ministry has also decided to lower the economic growth estimate for 2019 to 4% from previously estimated 5.5%, according to a budget revision draft bill published on the ministry's website. The decisions were taken as a result of a poor tax collection and higher expenses, according to a footnote on the document.
Romania closed 2018 with a consolidated budget deficit of 2.88% of GDP.
(1 euro=4.7785 lei)