Romania's public deficit rose to nearly RON 3.7 billion (EUR 760 million) or 0.33% of GDP in January, compared to the marginal deficit (0.04% of GDP) in the same month of 2020.

The Government injected RON 2.3 bln (0.2% of GDP) in accelerated VAT return and expenditures related to the COVID-19 health crisis, the Government explained.

The budget revenues increased by 5.6% year-on-year to RON 29.2 bln (EUR 6.0 bln), but this was mainly the effect of non-fiscal (one-off) revenues generated by the sale of the CO2 certificates and more significant transfers from the European Union's budget.

The fiscal revenues contracted by 2.4% yoy to RON 14.0 bln. The non-fiscal revenues soared by 47% yoy to RON 3.0 bln (+RON 985 mln), and the transfers from the EU budget also increased significantly by 54% yoy to RON 1.7 bln (+RON 598 mln).

The public expenditures increased by 17.4% yoy to RON 32.9 bln (EUR 6.8 bln), driven by more social security disbursements (+16.4% up to 42% of the total expenditures), bigger public payroll (+8.1%, 28% of total expenditures), and higher expenditures with goods and services (+20.3%, 12% of total expenditures).

The Government targets a 7.16%-of-GDP budget deficit this year, under national (cash-based) methodology - down from 9.8% of GDP public deficit in 2020.

iulian@romania-insider.com

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