One billion euros budget deficit surplus in one month. 12.1 billion lei deficit in four months

Romania’s state budget consolidated general deficit amounted to 12.1 billion lei at the end of April 2010, nearly four billion lei more than at the same time last year, when figures read 8.22 billion lei. Spending went up by approximately one billion lei only for the National Motorway Company.

When it comes to budget revenues, the highest drops (when compared with the same period last year) were under „Other salary, profit and Capital gains taxes” (-35%), „Tax on foreign commerce and international transactions” (-16.8%), „Tax on profit” (-4.5%) and the tax on salaries (-7.3%).

As for spending, the most significant increases were seen in interest rates (225) and social assistance (15%). One of the explanations for this deficit is that wile the collected revenues have dropped, budget spending went up, deepening the difference.

The cut in comes must not come as a surprise – it is a natural effect of the economic contraction. The drop in VAT collection reflects the drop in consumption, while the shrinking money obtained by the State from the tax on profit represents the slowdown in the companies’ activity.

In contrast to the budget situation in March, consistent growth in spending went to the National Motorways and Roads Company 9one billion lei spent in one month), to the National health social insurances (almost 1.5 billion lei), and a double sum for the National Authority of Properties Return.

The total money the budget cashed in was 52.6 billion lei, 1.2 % less than the figures read at the same time last year.

Tax revenues dropped by 71.9 million against the same time in 2009, although the tax level went up in January 1 2010. The non-fiscal revenues increased by 652.6 million lei. The non-fiscal revenues are dividends, and money from public authorities and autonomous national societies, paid as taxes.

The budget spending – 64.7 billion lei, went up by 3.4% against the same time last year, but were lower by 0.7% in terms of percentage points of the GDP.

Staff spending are 6.1% inferior to figures from the same period in 2009. Spending on goods and services went up 6.7%, due to an increase in the local budgets, namely 12.5%, although the state budget saw a 3.5% reduction in this type of spending.

Social assistance spending went up by 14.5% against same time last year. The highest plus was seen in unemployment benefits (+111.3%) and the local administration budgets (+40.8%).

Interest rates spending went up 22.7% in contrast to the same month last year, following the increase in budget deficits accumulated over the last years.