Revenues to the consolidated budget amounted to RON175.15 billion in the first seven months, 2.7% lower compared with the same period in 2019. After revenue growth in June, July revenues dropped 8.1% on the year, the ministry said, on the back of a 10.5% GDP contraction in the second quarter and extended tax facilities.
Income tax collections amounted to RON14.34 billion in the first seven months, up 6.5% on the year.
Social security contributions amounted to RON64.78 billion in the first seven months, unchanged compared with the same period last year due to tax deferrals.
Profit tax collections amounted to RON10.24 billion, down 14.8% on the year, due to economic downturn, tax deferrals and discounts of up to 10% granted for on-time payment.
Value-added tax collections totaled RON29.86 billion in the first seven months, down 16.4% on the year, as the government’s VAT refunds grew 27.8% on the year in the same period.
Excise duty collections totaled RON16.57 billion, down 2.4% on the year.
Romania received RON10.52 billion from the European Union in the first seven months, up 19.9% on the year.
Budget spending in January-July stood at RON224.83 billion, 13.4% higher on the year. The bulk of expenses were related to the coronavirus crisis, covering healthcare expenses and economic support measures.
Staff spending grew 5.7% on the year in the first seven months, to RON63.2 billion, or 6% of GDP.
Goods and services spending grew 15% on the year, to RON30.1 billion.
Social welfare spending grew 22.4%, to RON80 billion, mainly due to double-digit growth in pensions as of September 2019 and furlough payments.
Romania spent RON4.25 billion on subsidies in the first seven months, mainly in agriculture and transport.
Investment spending, which includes capital expenditure and development programs financed from local and external sources, amounted to RON20.4 billion, 29% higher compared with the first half of 2019.
Romania’s government has revised its budget deficit target for 2020 to 8.6% of the gross domestic product from a previous projection of 6.7% of GDP. It also revised its estimates for this year’s economic downturn and now expects a contraction of 3.8% of GDP from a previous estimate of 1.9%.