The companies’ money for salaries and investments is “withheld” by the state

The budget deficit in the first three months was 15.7 billion lei, 7% higher than in the similar period of 2021. However, it could have been even higher if a subterfuge had not been used, according to Florin Cîțu, the president of the Senate and theoretically part of the ruling coalition.

“Official information shows that in the first quarter the amount of VAT refunded by the state to companies was on average 600 million lei LESS than in the first quarter of last year. In order to show a smaller budget deficit, Romanian companies are, I can’t find another word, overtaxed. The money they had to use for investments or salary increases is “withheld” by the state to present a smaller budget deficit. And with all these efforts and costs for the companies that support the Romanian budget from their taxes, in March 2022 the budget deficit is BIGGER than in March 2021. It is the first time in 12 months when this happens “, said Cîțu.

The budget deficit increased in the first three months of 2022 to 15.7 billion lei, but, expressed as a percentage of GDP, the deficit decreased by 0.05 percentage points, from 1.24% of GDP to 1.19% , shows data published by the Ministry of Finance.

The evolution is explained by the increase of total revenues by 0.66 percentage points of GDP (mainly VAT revenues 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. As a percentage of GDP, 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.

Source: Cotidianul RO by

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