Romania’s consolidated state budget registered a surplus of RON 1.98 billion (EUR 425 million) or 0.21% of the estimated gross domestic product (GDP) for this year in January, down from RON 3 billion (0.35% of the GDP) in January 2017.

The consolidated budget revenues went up by 16.8% year-on-year, to RON 22.4 billion (EUR 4.81 billion), while the state’s expenses increased by 26.4%, to RON 20.4 billion (EUR 4.39 billion), according to data released by the Finance Ministry on March 1.

The state’s revenues from social contributions increased by 23.1% and the revenues from the individual income tax and corporate profit tax went up by 13.7%. Meanwhile, the revenues from taxes on goods and services, which mainly include the VAT and excises, only increased by 1.8%, as VAT revenues grew by 7.8% and excises dropped by 14.9%.

On the expenses side, the state’s personnel costs increased by 18.5% and the expenditure for the purchase of goods and services went up by 27.1%. Welfare expenses also grew by 13%.

editor@romania-insider.com