November 26 (SeeNews) - Romania's consolidated budget showed a deficit equivalent to 2.8% of the projected 2019 gross domestic product (GDP) in the ten months through October, compared to a gap of 2.2% of GDP a year earlier, the finance ministry said on Tuesday.
The consolidated budget deficit totalled 28.83 billion lei ($6.6 billion/6 billion euro) at the end of October, as revenue rose 12.4% year-on-year to 261.1 billion lei, whereas spending increased 14.5% to 289.9 billion lei, the finance ministry said in a statement.
Labour costs were 19.5% higher due to wage increases financed from public funds.
Tax revenue rose by 13.1%, social security contributions grew 14.4% and VAT proceeds increased 11.8% in the review period.
Investments totalled 26.8 billion lei in January-October, up 30.4% compared to a year earlier.
Also on Tuesday, Romania's 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%. 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=4.7722 lei)