Romania's 1Q Budget Revenue +10.2% On Year To RON41.6B

04.26.2011 By Florentina Dragu

Romanian budget revenues rose 10.2% on the year to 41.6 billion lei (EUR10.2 billion) in the first quarter, mostly fueled by higher income from the sales tax and excise duties, the Finance Ministry said Tuesday.

Romanian budget revenues rose 10.2% on the year to 41.6 billion lei (EUR10.2 billion) in the first quarter, mostly fueled by higher income from the sales tax and excise duties, the Finance Ministry said Tuesday.

It said total revenues from the value added tax increased by 35.9% on the year in the first quarter, while revenues from excise duties were up 20.4%. In July 2010, Romania raised the VAT level from 19% to 24%.

On the other hand, budget expenditure inched up 1.3% on the year to RON46.8 billion, bringing the first-quarter budget deficit to RON5.6 billion, or 1% of the gross domestic product.

A year earlier, the consolidated budget had posted a deficit of RON8.2 billion, or 1.5% of GDP.

Romania's budget gap narrowed to RON33.3 million, or 6.5% of GDP in 2010, from 7.2% of GDP a year earlier.

For 2011, the government targets a deficit of RON24 billion, or 4.4% of GDP. (EUR1=RON4.0735)