Romania's Jan-Sept cons budget gap widens to 2.6%/GDP

The consolidated budget deficit totaled 26.97 billion lei ($6.3 billion/5.7 billion euro) at end-September, as revenue rose 11.6% year-on-year to 228.7 billion lei whereas spending increased 15.3% to 255.6 billion lei, the finance ministry said in a statement.

Labour costs were 20.2% higher due to wage increases financed from public funds.

Tax revenue rose by 14.5%, social security contributions grew 15.3% and VAT proceeds rose 11.9% in the review period.

Investments totaled 22.9 billion lei in January-September, up 50.5% compared to 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=4.7572 lei)