Increased budgetary revenues in December, below expected level

The revenues collected to the general consolidated budget in December amounted to RON 9.97 bln., advancing by 32.5 per cent over the level registered during the similar time period of 2005, but slightly below the level expected, RON 10.21 bln.

Levels of collection below those expected were registered at the State budget, local budgets and unemployment insurance budget, whereas in case of national single fund for social health insurance and State social insurance budget, the planned values were exceeded, according to the data from Ministry of Public Finances (MFP). For January – December, the revenues cumulated for the five components of the budget amounted to RON 100 bln.

At the end of November, the general consolidated budget was posing a surplus accounting for 1.23 per cent of GDP. Last week, MFP informed that total revenues were amounting to RON 96.4 bln., whereas expenditures were amounting to more than RON 92.2 bln. after the first 11 months.

At the last reappraisal of the previous year, the Government approved a deficit of the consolidated budget for 2006 that accounted for 2.5 per cent of GDP, and Minister of Public Finances, Sebastian Vladescu, estimated, at the end of last year, that the deficit would be around 1 per cent of GDP. At that time, the Minister explained that the switching from surplus to deficit in relation to the budgetary execution takes placed against the background of settlements worth EUR 2 bln. for various projects committed by the Government, including infrastructure, along with debts of some state run companies, worth EUR 800 M, having been written off, and following the increase of the equity capital of House of Savings (CEC) by EUR 150 M. For 2007, the expected deficit of the consolidated budget is maximum 2.8 per cent of GDP.

At the end of last year, MFP borrowed RON 950 M from BCR, CEC and Transilvania Bank, the amount being used for making current payments, from State Treasury.

The loans, refundable in two weeks, were committed at an average interest of 8.38 per cent per year. At the end of last week, MFP took another loan of RON 800 M from banks, at an average interest of 6.4 per cent, according to Mediafax which cited sources from the market.

Source: nineoclock.ro