The ratio of general budget revenue for GDP estimated for 2007 was 23.6 percent by the end of September, slightly above the 23.4 percent level of spending. The January-September budget excedent resulted from revenue exceeding RON 91.99 billion (€27.5 bln) and RON 91.26 bln (€27.3 bln) in spending.
“The budget excedent was not a result of higher revenue. Budget revenue was slightly below initial estimates, but there was no spending of European funds destined for co-financing projects, worth some €300 million, and the infrastructure allocation is delayed,” Liviu Voinea, CEO of the Group of Applied Economics, told Business Standard.
The budget excedent is dropping from its 0.32 percent of GDP registered at the end of August. The added value tax brought the most significant budget revenues as share of GDP, of 5.6 percent, followed by the income tax (2.6 percent of GDP) and excises (2.3 percent of GDP). Income from insurance payment accounted for 7.2 percent of GDP.
In terms of spending, insurance and social programs continue to rank first after nine months, with 7.5 percent of GDP, and are followed by spending on education, health and transportation. The executive set a deficit target of 2.8 percent of GDP for 2007, at an estimated share of revenue of GDP of 36 percent, even though after nine months revenues surpassed expenditures. GDP is estimated, based on budget allocation, at RON 389.8 bln (€115 bln).
