The general budget after eight months of this year closed with a deficit of RON 6.5 billion, respectively 0.78 percent of GDP, compared with the deficit of RON 3.1 billion, respectively 0.41 percent of GDP registered in the same period of 2016, according to the Ministry of Public Finances.

During January-July, the deficit reached RON 5.1 billion, meaning 0.63 percent of GDP, compared with RON 1.74 billion registered in the same period of 2016.

The revenues of the general consolidated budget amounted to RON 160.4 billion, meaning 19.2 percent of GDP, were higher by 8.9 percent in nominal terms compared with the same period of 2016.

According to the Ministry, there were increases in the social contributions (16.6 percent), tax per income and salaries (10.4 percent), non-fiscal revenues (14 percent) and capital revenues (13.4 percent) compared with 2016.

In comparison, the taxes per income and taxes per property dropped by 6.4 percent compared with the same period of 2016, the decrease being determined mainly by the elimination of tax per special constructions from January 1.

Also the revenues from taxes on goods and services and other taxes increased by 66.3 percent compared with the same period of 2016, mainly due to the evolution of revenues from drugs contribution, as well as cost-volume/cost-volume-results contracts financed from the Sole National Fund of Healthcare Social Insurances.

The VAT revenues registered a decrease by 1.7 percent compared with the same period of 2016, due to the reduction in standard VAT quota from 24 percent to 20 percent starting January 1, 2016, which was reflected in revenues starting February 2016. At the same time, from February 2017 the effects of standard VAT quota reduction from 20 percent to 19 percent is reflected in revenues.

Also the revenues from excises were by 5.2 percent lower compared with the same period of 2106, influenced by the reduction in some energy products starting January 1, 2017.

The expenses of the general consolidated budget, amounting to RON 166.9 billion increased in nominal terms by 11 percent compared with the ones registered in the first eight months of 2016.

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