Romania recorded a consolidated budget deficit of RON 11.4 billion (EUR 2.4 billion) in the first four months of this year, or 1.1% of the gross domestic product (GDP) estimated for this year, according to data released on Monday, June 3, by the Finance Ministry.

The budget gap was 88.4% wider than in the same period of 2018, as the state's personnel expenses increased by 26%.

Overall, the state's expenditure increased by 15.7% compared to the first four months of 2018, reaching RON 110.9 billion (EUR 23.6 billion), while the revenues went up by 11%, to RON 99.5 billion (EUR 21.2 billion).

The state recorded higher revenues from social contributions (+19.6%) and VAT (+12%). Meanwhile, the expenses that increased the most were those with personnel (+26%), welfare (+15%), goods and services (+14.9%), and interest (+14.9%). Investment expenditure totaled RON 6.8 billion (EUR 1.45 bln).

Romania recorded a budget deficit of RON 5.5 billion (EUR 1.18 billion) in the first quarter, representing 0.54% of the year’s estimated GDP.

editor@romania-insider.com

(Photo source: Pexels.com)