Budgetary revenues increased by 12% in the first half of 2018 and expenditures by 19%

today, 00:03

Author:

Iulian Anghel

The general government deficit increased in the first half of the year to 1.6% of GDP, after an increase of 12.5% ​​in revenue and 19% in expenditure.

June to June, the difference between receipts and expenditures was even higher. Revenues increased by 12.2%, but expenses increased by 21.7%. Spending from June to June increased by 36.8 percent in wages and 31 percent in welfare. At six months, wages increased by 24.4% and social spending by 13.9%.

Thus, the deficit reached 1.6% of GDP, the highest since 2011, when the economy was recovering from the deep crisis that it has been going through for several years. Now the economy is growing, although the pace will not repeat the problem in 2017. The problem is that the budget is built on an increase of 5.5%, while the growth will be lower and so the l & rsquo; Narrower fiscal space

"The budget construction was wrong from the outset because it was hard to believe that the 2017 figure could be repeated, now the problem is that incomes n & # 39; They have no way to increase, and the expenses have already been incurred and can hardly be returned.I do not think that the deficit target of 3% of GDP can be met, "commented L & 39. economist Aurelian Dochia.

In the field of revenue, finance contributes 6.8 billion lei of revenue from European funds. But 5 billion of this money is agricultural subsidies. Thus, the "clean" European funds have, in less than six months, less than 2 billion lei.

The tax on profits increases by 1.3% to six months. VAT receipts increased by 5.9%, excise duties by 9.9% and insurance contributions by 36.8%.

On the basis of these figures, the Ministry of Finance recently announced a positive budget correction. But economists think it's different.

"I do not know where the game will go, especially in terms of revenue." Finance talks about a positive rectification of buckwheat (expected at the end of the month – n.red.), But the rectification should be negative They have to go through massive cuts in spending and do not know where they are going to go because the recent salary increases can not be dropped without political costs, "commented economist Dragoş Cabat.

At the expense, they rose by 19% to six months, with staff costs registering a surplus of 24.4%, those with goods and services over 9.9% and capital expenditures (budget investments) of 72%, up to 19%. to 7 billion lei

"In recent years, the government has reduced its capital expenditure because it was adjusting to the deficit. He had fiscal space, paid for the work, did not have it, delayed them. Now, they have made some of these expenses at the beginning of the year and reduced their room for maneuver, so it is very difficult to withhold the deficit

Also, some of these capital expenditures are purchases of Army and these extra expenses will not have a boost on the economy, so there will be a profit for future growth, "comments Dochia