Macro Analysis /

Romania: General government budget gap is up to 2.96% of GDP in H1, slightly above target

    27 July 2021
    • Fiscal stimulus and exceptional spending with pandemic represent 1.17% of GDP
    • Revenue still performs better than expected but it is slowing down, while expenditure is picking up
    • Revenue growth in June eases due to base effects, exceptional payments made in previous months
    • Weaker private consumption in May causes lower recovery of VAT collection
    • Expenditure rise picks up, transfers and spending on EU-backed projects report strong growth
    • Fiscal target in H1 is missed mainly due to jump in transfers to regional governments in Q2