Romanian govt to discuss 2014 budget in first reading on Nov 14 - data

By bne IntelliNews November 14, 2013

Romania’s government is expected to discuss on November 14 in first reading the budget planning for 2014, Ziarul Financiar daily announced. Romanian officials discussed the budget planning for next year, as well as a revised version of this year’s budget with the IMF and the EC a couple of weeks earlier when their representatives ran a first review of their 2013-2015 agreements with Romania.

The cash deficit of the budget is planned to narrow from 2.5% of GDP this year to 2.2% in 2014. The government expects GDP to reach RON 658.6bn (EUR 148bn) in 2014 – up from RON 626.2bn in 2013 – driven by 2.2% real GDP growth rate. The exchange rate would remain steady from this year at RON 4.45 against the euro. End-year headline inflation is projected at 3% for next year – up from 1.8% projected by the central bank for the end of 2013.

Budget revenues would increase by 5.2% y/y to RON 216.8bn in 2014, thus remaining at a modest 32.9% of GDP ratio. Besides the conservative projection, the government considers freezing 10% of the ministries’ budgets until the second budget adjustment scheduled for the autumn [Oct-Nov]. The move would be aimed at avoiding problems caused by actual revenues falling significantly below the targets during the year.

Budget expenditures would increase by only 4.3% y/y under the budget planning, at a slower rate then revenues, to RON 231.3bn [35.1% of GDP].

General government budget
  2013 2013 2014 2014   2013 2013 2014 2014
  RON bn % of total RON bn % of total   RON bn % of total RON bn % of total
Revenues, o/w         Expenditures, o/w        
Profit tax 10.8 5.2 11.4 5.2 Payroll 46.1 20.8 47.8 20.7
Income tax 22.8 11.1 24 11.1 Goods&services 39.5 17.8 39.3 17.0
VAT 52.8 25.6 54.6 25.2 Investments 36.2 16.3 40.1 17.3
Excise tax 20.9 10.2 24.1 11.1 Interest 10.7 4.8 11.2 4.9
Social security 54.3 26.4 57.8 26.6 Social security 68.8 31.0 71.5 30.9
Property tax 4.4 2.2 5 2.3 Transfers 5.2 2.3 5.7 2.5
Non-fiscal 17.4 8.4 17.4 8          
From EU 13.07 6.3 14.8 6.9          
Total 205.9 100 216.8 100 Total 221.8 100 231.3 100
Source: ZF

 

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

Bucharest urges local government to borrow from banks despite warnings from IMF and EC

Romania’s local administration can co-finance the EU-funded projects from bank loans at interest rates lower than the financing cost of the Treasury, Romania’s central government reportedly ... more

IPO of Romanian telco RCS&RDS reportedly planned for May

A group of shareholders of Romanian diversified telecoms group RCS&RDS want to sell 20%-30% of the group’s shares in an IPO, Ziarul Financiar daily reported. The IPO is expected to take place ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss