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Budget deficit increases to 5.2% at November end

The budget deficit increased at the end of November this year to 5.2 percent of the estimated gross domestic product (GDP), compared with 4.63 percent of GDP at the end of October, Government sources told Agerpres.

'In November the budget spending was by approximately 3 billion lei higher than the revenues. Although the budget imbalance usually deepens in the last month of the year, there are high chances for Romania to meet the budget deficit target of 6.8 percent of the GDP in 2010, a target agreed upon with the International Monetary Fund and with the European Commission,' the same sources said.

In the last month of the year the budget spending grows faster because this is when the settlement of payments for the already made commitments is done and when the chief officers' investment expenses increase.

Last year, for example, the budget deficit went up to 7.2 percent of GDP at the end of the year, from 6 percent of GDP at the end of November 2009.

After the first ten months of 2010, the budget deficit was 23.683 billion lei (approximately 5.5725 billion euros) or 4.63 percent of the GDP. According to the Public Finance Ministry, the revenues collected to the general consolidated budget in the first ten months amounted to 136.8 billion lei, 4.3 percent more, in nominal terms, compared with the accomplishments in the similar period of the previous year. The annual revenue programme for 2010, estimated at 166.8 billion lei, was accomplished in a 82.1 percent rate. The collection increase in the above-mentioned period was registered mainly in the added value tax (+10.3 percent), excise taxes (+11.5 percent) and non-fiscal revenues (+21.4 percent).

Significant gaps compared with the similar period of the previous year are still registered in the income tax (-3.6 percent), tax on profit (-6.6 percent) and social security contributions (-5.5 percent). The expenses of the general consolidated budget amounting to 160.5 billion lei increased 2.5 percent in nominal terms from the same period of the previous year. The increase was registered mainly in interest rates (+15 percent), as a consequence of financing the budgetary deficits accumulated in the previous years, the EU co-financed programmes (+159 percent) and social welfare (+8 percent).

Sursa: http://www.agerpres.ro

Tags: percent budget billion november deficit