The execution of the general consolidated budget for 2023 ended with a deficit of 89.90 billion RON, or 5.68% of GDP, respectively, down from 5.76% of the negative balance of 2022, according to data published on Tuesday by the Ministry of Finance.

Total revenues amounted to 521.45 billion RON last year, up 13.3% year-on-year, amid revenues from European funds, payroll and income tax and insurance contributions. The expenditures of the general consolidated budget amounting to 611.35 billion RON increased in nominal terms by 13% compared to the previous year, maintaining their share at the level of 38.6% of GDP.

On the revenue side, the Ministry of Finance notes that favorable developments were recorded, but more tempered, also in the case of revenues from VAT, corporate income tax and non-tax revenues.

Payroll and income tax receipts totaled 40.41 billion RON, registering an increase of 19.9% (year/year).

At the same time, revenues from the payroll tax registered an advance of 11.2%, below the evolution of the wage fund in the economy (15.6%).

Insurance contributions registered 158.66 billion RON, up 13.4% (year-on-year).

Income tax revenues amounted to 29.13 billion RON, registering an increase of 9.2% (year/year).

Net VAT receipts registered 104.33 billion RON, up 10.9% (year-on-year).

The revenues from excise duties amounted to 37.26 billion RON, registering an increase of 5.5% compared to the previous year.

Non-tax revenues amounted to 42.66 billion RON, registering an advance of 7.5% (year/year).

On the expenditure side, personnel spending amounted to 132.7 billion RON, up 12.8% compared to the previous year. Expressed as a share of GDP, personnel costs maintained their share at 8.4% of GDP.

Expenditures with goods and services were 77.16 billion RON, up 6.5% compared to 2022.

Interest expenses amounted to 30.62 billion RON, by 1.53 billion RON more than in the previous year, respectively 5.2% compared to the previous year.

Social assistance expenditures amounted to 191.01 billion RON, up 9.6% compared to the previous year.

The expenses with subsidies amounted to 18.01 billion RON, mainly, this amount represents subsidies for passenger transport, for supporting agricultural producers, as well as for the compensation scheme for electricity and natural gas consumption of non-household consumers (6.05 billion RON) which represents 33.58% of the total subsidies.

Other expenses amounted to 10.91 billion RON, representing mainly amounts related to payment titles issued by the National Authority for Property Restitution, according to the legislation in force, scholarships for pupils and students, support for religious denominations, other civil compensations.

Expenditures on projects financed from non-reimbursable external funds (including subsidies from the European Union related to agriculture) were 78.41 billion RON, 53.98% higher compared to the previous year.

Investment expenditures, which include capital expenditures, as well as those related to development programs financed from internal and external sources, amounted to 100.66 billion RON, increasing by 38.8% compared to the previous year, when they were worth 72.53 billion RON. Also, there is an increase in the share of investments financed from post-accession non-reimbursable external funds, representing 61.58 percent of total investment expenditures, the document of the Ministry of Finance also reads.

Finance minister Marcel Bolos had announced earlier this year that Romania could end 2023 with a budget deficit below 5.7%. This year's budget is built on a deficit falling to 5% of GDP.AGERPRES(RO - author: Andreea Marinescu, editor: Mariana Nica; EN - editor: Maria Voican)