The budget deficit increased by 7% in the first quarter of 2022


The evolution is explained by the increase of total revenues by 0.66 percentage points of GDP (mainly revenues from VAT and other taxes on goods and services), while budget expenditures increased by 0.61 percentage points of GDP (mainly expenditures with social assistance and European funds).

The revenues of the general consolidated budget amounted to RON 104.06 billion in the first quarter of 2022, 21.3% above the level received in the same period last year. This favorable development was mainly influenced by the advance of VAT revenues, other taxes and duties on goods and services, European funds, insurance contributions and non-tax revenues.

At the same time, the expenses of the general consolidated budget in the amount of 119.75 billion lei increased in nominal terms by 19.2% compared to the same period of the previous year. Expressed as a percentage of Gross Domestic Product, spending for the first three months of 2022 increased by 0.6 percentage points over the same period in 2021, from 8.5% of GDP to 9.1% of GDP.

Analyzing the components of budget revenues, net VAT revenues amounted to 23.62 billion lei in the first quarter, registering an increase of 39.3% (year / year). Their dynamics was influenced by the favorable evolution of the relevant macroeconomic base, as well as by a level of VAT refunds (4.53 billion lei in January-March) lower than the amounts reimbursed last year.

Wage and income tax revenues totaled 7.54 billion lei in the first three months, recording an increase of 11.7% (year / year), supported by the increase in dividend tax revenues (+ 28.9%), respectively pension tax (+ 27.2%). At the same time, income from income tax increased by 8.2%, below the evolution of the wage fund in the economy (+ 10.5%).

Insurance contributions registered 33.3 billion lei, increasing by 9.2% (year / year). As in the case of income tax, the evolution is lower than the dynamics of the salary fund, ZF announces.

Excise revenues amounted to 8.36 billion lei in the first three months, increasing by 7.9% (year / year). In the structure, there is a dynamic of 22.4% in the case of excise revenues for energy products (supported by the increase in fuel consumption and the increase in excise by 3.6% from January 1, 2022), respectively a decrease in excise revenues for tobacco products compared to the same period last year (-5.9%, year / year).

The amounts reimbursed by the European Union on account of payments made and donations totaled 8.39 billion lei in the first three months, increasing by 67.4% (year / year).

In the area of ‚Äč‚Äčexpenditures, investments, which include capital expenditures, as well as those related to development programs financed from internal and external sources, amounted to 8.41 billion lei, increasing by 4.3% compared to the first quarter of 2021, when they were worth 8.06 billion lei.

According to Finance, there is an increase in the share of investments financed from non-reimbursable external funds after accession, representing 57.9% of total investment expenditures, while investment expenditures from domestic resources decreased.

Personnel expenses amounted to 28.34 billion lei, up 2.2%. Expressed as a share of GDP, staff expenditure is 2.2% of GDP, 0.1 percentage points lower than the same period last year.

Expenditures on goods and services amounted to 14.94 billion lei, an increase of 14.9%, an advance that is reflected in the local budgets, respectively 21.8% compared to the same period of the previous year, as well as in the budget of the Single National Fund for 9.2% social health insurance.

Expenditures on social assistance were 46.15 billion lei, an increase of 20.9%, while expenditures on subsidies were 2.99 billion lei, mainly this amount represents subsidies for passenger transport, as well as for supporting agricultural producers.


Source: Jurnalul by jurnalul.ro.

*The article has been translated based on the content of Jurnalul by jurnalul.ro. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!