Romania’s budget deficit narrows slightly to 0.63% of the GDP in April

Romania’s budget deficit saw 0.63 percent of the gross domestic product narrowing in April this year after the 0.94 percent of the GDP seen in the first three months this year, while the gap target this year stands at 2.3 percent of the GDP.

Partial data from the Ministry of Finance point to a public deficit of 2.77 billion lei after the first four months of the year, a slight comeback from the 4.14 billion lei in the first three months of the year.

However, the gap is still wide considering the target this year is of 2.3 percent and the last part of the year usually has in store high spending.

On the other hand, the general consolidated budget saw slight surplus of 2 percent of the GDP below data announced by the Finance Minister Varujan Vosganian in mid-May. He estimated at that time a surplus of the first four months of 0.14 percent of GDP, still below the level seen in the similar period last year when it stood at 0.34 percent.

The largest spending of 25.03 billion lei was from the public budget, followed by local ones, where expenditures stood at 13.55 billion lei. Some 10.57 billion lei were spent from the social insurance budget.

The public budget saw the highest revenues of 22.26 billion lei. Revenues from profit taxes, salaries, incomes and earnings from capital reached 11.72 billion lei the equivalent of 2.7 percent of GDP.

According to the European Commission the balance of payments will deteriorate to 3 percent of the GDP in 2008, followed by a widening to 3.7 percent of the GDP in 2009.

NewsIn