The draft says the government has revised down its forecast on this year’s revenues to the state budget, estimating lower revenues from excise duties and European Union funds, but higher revenues from the value added tax, the income tax and the tax on use of goods.
According to the draft, the Government expects state budget revenues from excise duties to decrease by RON918.6 million, or 0.2% of the GDP, cash-ins from untaxed revenues to go down by RON1.8 billon, the amounts received from the European Union as deductions for operated payments to decrease by RON2 billion, capital revenues to decline by RON432.7 million, revenues from social security contributions to decrease by RON179.6 million, as well as cash-ins from the profit tax to decrease by RON91.8 million. The government has also revised its expenditure forecast down by RON 753 million.
The government also expects state budget revenues from the value added tax to go up by RON2.3 billion, revenues from the income and salary tax to increase by RON430.9 million and revenues from the tax on use of goods to increase by RON288.8 million.
Revenues of investment fund Fondul Proprietatea are expected to decline by RON430 million.
According to the draft, staff expenses will be hiked by RON648 million namely, 0.1% of the GDP, mainly due to the increase in salaries in the public sector, while costs with interest rates will increase by RON862.1 million. Also, costs with projects financed from external non-reimbursable funds will be lowered by RON1.4 billion, while other type of expenses will decrease by RON42.4 million. To cover the deficit run by the budget of the national sole health insurance fund, RON54.9 million will be pumped from the state budget, via the Health Ministry.
Romania’s economy shrank for a second straight quarter in January through March, meaning the country is technically into recession.
In 2011, the country’s GDP increased by 2.5%, helped by a bumper harvest and improved performance in industry. (EUR1=RON4.5364)