Romania’s public deficit reached RON 62.8 billion in January-October, one-third more than in the same period last year. The deficit to GDP ratio reached almost 4%, up from 3.34% in 2022.

Revenues increased by 10.6% y/y to RON 418.8 billion (26.5% of the year’s projected GDP), and expenditures increased by 13.1% y/y to RON 481.7 billion (30.4% of GDP).

The revenues increased by only 8% y/y in October alone, while the expenditures advanced much faster by 15% y/y, but monthly data could not be entirely relevant as opposed to quarterly data.

Romania expects to keep this year’s public deficit ratio not much higher than last year’s 5.75% of GDP value (cash terms).

On the revenues side, the collection of excise duties advanced by only 2.6% y/y in January-October 2023. On the expenditures side, the interest on public debt rose by 15.2% to RON 28.1 billion (1.8% of GDP). The capital expenditures maintained a robust pace of 17.9% y/y and reached RON 28.0 billion (1.8% of GDP) as well. 

iulian@romania-insider.com

(Photo source: Dreamstime.com)