SIMILAR ARTICLES

AOAR: Solutions to imbalances produced by chaotic tax legislation – business environment reaction to a slander from a minister

The Businessmen’s Association of Romania (AOAR) proposes a series of solutions to get out of the “chaos” of the fiscal and revenue legislation adopted last… Mai mult

Government has approved OUG to preserve income of IT and part-time employees

The Government approved on Thursday the OUG comprising the measures needed to preserve net wages that professional groups exempted from income tax and part-time employees… Mai mult

EBRD: Romania needs to change its economic growth model. Better “sooner than later”

Romania needs to adopt a different economic model if it wants to avoid a crisis caused by the current consumption boom, according to Matteo Patrone,… Mai mult

INS – Context survey: stability or even stagnation, employees about the same but all prices up!

According to the perception of managers from the field, the manufacturing industry will register a relative stability of production volume in the following months (conjuncture… Mai mult

OLAF runs investigation at Metrorex – possible overpriced payments at Metro Line 5

UPDATE: In a statement issued to RFI, OLAF confirmed the investigation at Metrorex, and its topic – the Metro Line 5 (M5) financed by European… Mai mult

Ministry of Finance assures that 2017 target deficit, namely 2.96% of GDP, is not at risk

de Razvan Diaconu , 30.10.2017

Regarding the EUROSTAT release on Romania’s budget deficit in the second quarter of 2017, the Ministry of Public Finance (MFP) has issued a press release explaining the European figures and assuring that the annual deficit is in line with the plan.

We present below the full release:

“The deficit target of 2.96% of annual GDP set for 2017 is not at risk. The gap between the balances mentioned in the EUROSTAT release and the data published monthly on the MFP website comes both from the calculation methodology, as the European System of Accounts (ESA) uses the accrual method and the impact generated according to the calculation methodology used for the seasonally adjusted quarterly deficits.

The implementation of the general consolidated budget according to the national methodology at the end of the first quarter of 2017 showed a surplus of 0.19% of the annual GDP, and in the second quarter, the general consolidated budget recorded a deficit of 0.96 % of GDP.

On the other hand, we inform you that the implementation of the general consolidated budget for the first nine months indicates a deficit of 0.81% of GDP, which shows that Romania is in line with the deficit target of 2.96% of GDP, set for 2017.

Please note that the value communicated by EUROSTAT, 4.1% of quarterly GDP, is calculated based on the seasonally adjusted ESA balance, by relating to the quarterly GDP. This reflects the trend pattern of the budget deficit recorded in the earlier quarters and related to the GDP in the second quarter, a quarter in which GDP is typically lower than in the third and fourth quarters of the year, in nominal terms.

It should be recalled that in 2016, the GDP in the second quarter was RON 178.7 billion, which represented 23.5% of the annual GDP. The highest quarterly GDP was recorded in the fourth quarter, RON 228.9 billion. In the second quarter of 2017, the GDP amounted to RON 197.5 billion, with the same share of the GDP forecasted for 2017.

Also, we notice in the data published by EUROSTAT that the same indicator recorded a maximum of 3.7% of GDP in the second quarter of 2016 when the deficit for the whole year was 3% of GDP. Compared to the similar period in 2016 (second quarter), we can notice that the budget deficit increased by 0.4pp to 4.1% of GDP.

It should be noted that the adjustment led to very low values in the third and fourth quarters of 2016, respectively 2.3% and 2.1%. Therefore, data published quarterly are not likely to explain the annual values. Such a seasonal development is also expected for the third and fourth quarters of 2017 so that we reach the level below 3% of GDP for the whole year.”

Mergeți în homepage ›

Publicat la data de 30.10.2017

Lăsați un comentariu


NEWS

AOAR: Solutions to imbalances produced by chaotic tax legislation - business environment reaction to a slander from a minister

The Businessmen's Association of Romania (AOAR) proposes a series of solutions to get out of the "chaos" of the fiscal and revenue legislation adopted last… Mai mult

Government has approved OUG to preserve income of IT and part-time employees

The Government approved on Thursday the OUG comprising the measures needed to preserve net wages that professional groups exempted from income tax and part-time employees… Mai mult

EBRD: Romania needs to change its economic growth model. Better "sooner than later"

Romania needs to adopt a different economic model if it wants to avoid a crisis caused by the current consumption boom, according to Matteo Patrone,… Mai mult

INS - Context survey: stability or even stagnation, employees about the same but all prices up!

According to the perception of managers from the field, the manufacturing industry will register a relative stability of production volume in the following months (conjuncture… Mai mult

Romanian Business Leaders: List of "signs of distrust" in economic year 2018

The Romanian Business Leaders (RBL) Macroeconomic Confidence Index, of 52.3 points, shows that the entrepreneurs and executives from the most important businesses in Romania have… Mai mult

OLAF runs investigation at Metrorex - possible overpriced payments at Metro Line 5

UPDATE: In a statement issued to RFI, OLAF confirmed the investigation at Metrorex, and its topic - the Metro Line 5 (M5) financed by European… Mai mult

Government goes on Eurobond market and attracts over EUR 3 billion. Complicated yields

The Ministry of Finance is trying to take advantage of the still favourable conditions for emerging government securities and goes on the Eurobonds market with… Mai mult

MFP: Government will borrow RON 74 billion in 2018, only through government bonds

The total volume of loans planned by the Ministry of Finance (MFP) for 2018 amounts to about RON 74 billion. Loans are to be secured… Mai mult

Pessimistic expectations about the future in latest CFA Romania research - economists anticipate a decrease of personal incomes and continuous depreciation of Romanian leu

In December 2017, the macroeconomic confidence indicator of CFA Romania declined to 41 points, the lowest value since April 2013, by 3.1 points below the… Mai mult

Second largest bank in EU, BNP Paribas, opens its branch in Bucharest

BNP Paribas, the largest French bank and the second largest in the EU by the size of assets, will launch its retail operations in Romania… Mai mult

Three options by which BNR intends to moderate lending

The BNR will impose restrictions on credits to the population, to anticipate potential non-payment risks. This could happen in March if the project is approved… Mai mult

Siegfried Muresan: Amendments to Romanian laws on judicial will be discussed in European Parliament

The European Parliament will run debates on the situation of justice in Romania in the next plenary session, in February, in the Strasbourg plenary. The… Mai mult

State has initiated procedure for purchasing 51% of Daewoo's shares at Mangalia Shipyard

The Government approved in the last meeting a memorandum stating that the state will use its preemption right at Mangalia Shipyard and buy the 51%… Mai mult

First major acquisition in 2018 - MApN signs contract with General Dynamics to acquire 227 armoured carriers

Minister of National Defence, Mihai Fifor, participates Friday at the signing of the procurement contract for 227 Piranha V armoured carriers, a release of the… Mai mult

Business environment: Waiving governance rules in state-owned companies, another measure that deepens feeling of distrust

The Foreign Investors Council (FIC) released on Wednesday a statement that expresses its dissatisfaction with the "authorities’ political agenda" containing decisions that "will lead to… Mai mult