"The execution of the consolidated general budget in the first eleven months of 2024 ended with a deficit of RON 125.72 billion, or 7.12% of GDP, compared with a deficit of RON 73.55 billion, or 4.58% of GDP, for the 11 months of 2023," the Finance Ministry document said.

Total revenues amounted to RON 523.94 billion in the first eleven months of 2024, up 12.7% (y/y), while expenditures of the consolidated general budget totaled RON 649.66 billion, up 20.6% in nominal terms compared to the same period of the previous year.

According to the Ministry of Finance, total revenues recorded an increase of 12.7% (y/y/y), mainly supported by receipts from current revenues - insurance contributions, VAT, excise duties, payroll and income tax, corporate income tax -, which also include the effects of the tax amnesty instituted by GEO no. 107/2024.

Receipts from the tax on wages and income amounted to RON 44.74 billion, up by 21.7% (y/y).

Revenues from the payroll tax increased by 20.5%, above the dynamics of the wage fund in the economy (17.1%), the evolution of this category of receipts being influenced by the amendment of the regulations on tax facilities granted to employees in the construction, agricultural, food industry and computer software creation activities (GEO no. 93/2023 and Law no. 296/2023) and by the increase in the gross minimum wage guaranteed in payment (GD no. 900/2023, and from July 1, 2024 GD no. 598/2024). At the same time, positive developments were also recorded in the case of tax receipts from pension income (61.0%) and from the single declaration (12.5%).

The dynamics of dividend tax receipts remain in negative territory (-3.7%), on the back of the high base effect from January 2023 (significant increase in dividends distributed on the basis of interim financial statements prepared during 2022, with the 5% tax rate withheld).

Insurance contributions amounted to RON 172.25 billion, an increase of 20.0% (y/y), above the evolution of the wage fund in the economy. The evolution of these receipts was positively influenced by the amendment of the regulations on tax facilities granted to employees in the construction, agricultural, food industry and computer software creation activities (GEO no. 93/2023 and Law no. 296/2023), the increase in the gross minimum wage guaranteed in payment (GD no. 900/2023, and as of July 1, 2024 HG No. 598/2024) and the increase in the gross national minimum wage guaranteed in payment for the construction, agricultural and food industry sectors (GEO No. 93/2023), and negatively by the refund of amounts withheld as CASS from pension revenues (budgetary effect of - RON -0.14 billion, according to GEO No. 4/2023).

Corporate income tax receipts amounted to RON 34.4 billion, an increase of 22.3% (y/y/y), supported by the increase in corporate income tax receipts, including the minimum turnover tax from economic agents and the corporate income tax from commercial banks. The evolution of this category of receipts was negatively influenced by the redirection from corporate income tax of the amount for sponsorships and/or acts of patronage, in accordance with Law 322/2021 (RON -0.6 billion).

Net VAT receipts amounted to RON 108.57 billion, up by 15.0% (y/y). Also, the amount of VAT refunds increased by almost 7.0% compared to the level refunded in the same period last year (RON 28.50 billion in January-November 2024, compared to RON 26.64 billion in January-November 2023). The evolution of VAT receipts was also supported by the tax changes introduced by Law 296/2023, such as the increase in the VAT rate for food with added sugar (over 10 g/100 g product), for the right to use sports facilities, transportation of persons for tourism purposes, for the supply of housing as part of social policy, the supply and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-efficiency heating systems.

Revenue from excise duties amounted to RON 42.15 billion, an increase of 25.3%, supported by the increase in excise duties on energy products (+25.4%), and in the context of a positive development in fuel consumption. At the same time, excise duties on tobacco products increased by 22.5%.

"The monthly evolution of excise duty receipts is generally more volatile, due to the policy of economic operators of tax warehousing of excise products," says the MF.

Non-tax revenues amounted to 46.44 billion lei, up 16.3% (y/y), supported by receipts from the NBR's net income and dividends.

Also, the amounts reimbursed by the European Union on account of payments made and donations totaled RON 36.85 billion, down by 25.5% (y/y).

Expenditures of the consolidated general budget in the amount of RON 649.66 billion increased in nominal terms by 20.6% compared to the same period of the previous year. Expressed as a percentage of GDP, expenditures for the first eleven months of 2024 increased by 3.2 percentage points compared to the same period of 2023, from 33.6% of GDP to 36.8% of GDP.

Personnel expenditure totaled RON 148.04 billion, up 23.8% compared to the same period of the previous year. Expressed as a share of GDP, personnel expenditure amounted to 8.4% of GDP, 0.9 percentage points higher than in the same period of the previous year, taking into account the wage increases granted in 2023 and 2024, respectively.

Spending on goods and services amounted to 84.01 billion lei, up by 22.3% compared to the same period of the previous year. An increase is reflected in local budgets, i.e. 14.6% compared to the same period of the previous year, as well as in the budget of the Single National Health Insurance Fund of 26.0% for the settlement of medicines with and without personal contribution and medicines used in national health programs.

Interest expenditure amounted to RON 35.33 billion, RON 5.27 billion more than in the same period of the previous year.

Expenditure on social assistance amounted to RON 205.29 billion, up by 16.2% compared to the same period last year. The evolution of social assistance expenditures was mainly influenced by the 13.8% increase in the pension point from January 1, 2024, i.e. from RON 1,785 to RON 2,032, the social allowance for pensioners (minimum pension) from RON 1,125 to RON 1,281, respectively, the implementation of measures for recalculation of public pensions starting September 1 this year, in accordance with the provisions of Law No 360/2023 of November 29, 2023 on the public pension system.

Social assistance expenditures were also influenced by the payments from the state budget for the compensation of invoices related to the consumption of electricity and natural gas, respectively for the eleven months of 2024, amounted to RON 3.40 billion.

Expenditures on subsidies amounted to RON 15.89 billion, mainly, this amount represents subsidies for passenger transportation, support for agricultural producers, as well as for the compensation scheme for the consumption of electricity and natural gas by non-household consumers (RON 3.37 billion), which accounts for 21.2% of total subsidies.

Other expenditures amounted to RON 17.20 billion, mainly representing scholarships for pupils and students, support for cults, civil indemnities, amounts related to payment titles issued by the National Authority for Property Restitution according to Law no. 165/2013 and Law no. 164/2014.

Expenditure on projects financed by non-reimbursable external funds (including European Union grants related to agriculture) amounted to RON 48.79 billion.

Investment expenditures, which include capital expenditures, as well as those related to development programs financed from domestic and external sources, amounted to RON 93.11 billion, up by 23.99% compared to the same period of the previous year, when they amounted to RON 75.10 billion.