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Budget deficit up to 3.35 pct of GDP, after 8 months of 2021

F. P.
deficit

The general consolidated budget deficit climbed to 3.35 pct of GDP after the first eight months of this year, from 2.89 pct of GDP after seven months, yet the negative balance is decreasing compared to the same period last year.

According to the budget execution published on Monday by the Ministry of Finance, after the first eight months of 2021 the deficit of the general consolidated budget amounted to 39.36 billion lei (3.35 pct of GDP), down from the deficit of 54.77 billion lei (5.19 pct of GDP), registered in the same period of 2020.

After the first seven months of this year, the budget closed on a deficit of 33.97 billion lei (2.89 pct of GDP).

"This positive evolution was determined by: the increase in budget revenues by 1.42 percentage points of GDP (YOY), mainly influenced by the advance of VAT receipts and European funds; the reduction of budgetary expenditures by 0.42 percentage points of GDP (YOY), as a result of the decrease in the share of expenditures on salaries in GDP. At the same time, in January-August 2021, the investment expenses were by 6.08 billion lei higher than in the same period of the previous year, and the exceptional payments generated by the COVID-19 epidemic amounted to 9.77 billion lei (15.85 billion lei, respectively 1.3 pct of GDP)," the Ministry of Finance said. AGERPRES

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