Expenses with goods and services lowered 5 percent in the first five months to 10.83 billion lei, while expenses with personnel rose 16.1 percent to 21 billion lei.
Following the budget revision in April, budget spendings with goods and services for the entire year were planned at 27 billion lei (5 percent of the GDP), down by almost one fifth on the level of 33.2 billion lei for 2008. Expenses with personnel were established at 41.5 billion lei, or 7.8 percent of the GDP, down from 43.3 billion lei or 8.6 percent of the GDP.
Revenues also featured some 520.4 million lei received from the European Union, unlike the first five months of last year, when no money had been cashed.
Collections from the value added tax (VAT) dropped in the period January 1 – May 31 by 15.7 percent year-on-year. Fiscal revenues diminished by 24.6 percent and capital revenues dipped 59.5 percent.
Capital spendings also reduced 19.4 percent to 6.37 billion lei, as spendings for investments stood close to 9.24 billion lei in the first five months.
MFP takes into account a GDP of 531.25 billion lei this year.
Romania’s Cabinet has a 4.6 percent budget deficit target this year, tantamount to 24.3 billion lei of the gross domestic product, following the agreement inked with the International Monetary Fund over a 20 billion euro external loan. The IMF fixed quarterly targets for Romania of 14.5 billion lei the most at the end of the second quarter and 18.6 billion lei for the third quarter.
