Romania recorded a budget deficit of EUR 2.7 billion in the first half of this year, which meant 2.07 percent of the country's GDP, below the target agreed with the International Monetary Fund (IMF). The revenues to the consolidated budget were 9.6 percent higher than in the first half of last year, after the increase in revenues from the VAT tax, which went up last year to 21 percent from 19 percent.

Revenues from social insurance contributions went up by 4.7 percent on the first six months of 2010. Revenues from the profit tax increased by 1.42 percent during the first months of this year. The main problem came from non-fiscal revenues, which diminished by 8.2 percent. Amounts from European Funds went up by 16.4 percent. Expenses went slightly up by 0.7 percent, but as a weight of the GDP, they went down by 0.9 percentage points.

editor@romania-insider.com

(photo source: Photoxpress.com)