Romania’s consolidated state budget deficit was EUR 355 million, or 0.24% of the Gross Domestic Product (GDP), in the first eight months of 2014, five times lower than in the same period of 2013, as budget revenues were higher while the state’s expenditures were lower.

The Government wants to keep the budget deficit under 2.2% of GDP this year, which means a deficit of up to EUR 3.2 billion.

Budget revenues in the first eight months of this year were EUR 30.7 billion, 4.3% higher compared to the same period of 2013. Fiscal revenues increased by 4.2%, to EUR 18.47 million. This increase was supported by the tax on profit, which brought 12% higher revenues compare to the first eight months of last year, or some EUR 2 billion, by taxes on property, which generated 33% higher revenues, or EUR 900 million, and by excises, which were almost 11% higher, at EUR 3.54 billion. Revenues from VAT were up by just 1%, to EUR 7.48 billion.

Government spending was down 0.5%, to EUR 31 billion, as public investments were cut. Total sums allotted by the Government for public investments were EUR 3.17 billion, 18% lower compared to the same period of last year. These include both investments financed by the state and investments financed from EU funds.

Andrei Chirileasa, andrei@romania-insider.com