Budget deficit keeps at 0.7% of GDP

The budget deficit had come to account for 0.7% of GDP at the end of October, the same as in late September, yet down to about half the level in the first ten months of last year, Finance Ministry reports. The Finance Ministry data show the general consolidated budget deficit went down by some 1,000bn ROL in October compared to the previous month, reaching 12,412bn ROL. The ministry says the positive trend throughout January-October 2003 was due to the 3,723bn ROL cut in the spending on public debt, as well as to revenues increasing faster than expenses. Revenues progressed by 27.8% while expenses increased by 23%, compared with the first ten months of last year. The cap set by the Government for this year’s budget deficit is 2.7% of GDP, and the level in the first ten months accounts for 25.4% of the yearly target. The state budget saw the highest deficit, 11,129bn ROL, down approximately 215bn ROL compared with late September. Social security budget deficit in its turn dropped from 4,964.3bn ROL to 2,105.9bn ROL. The surplus of the local budgets rose slightly to 6,693.8bn ROL, while the positive balance of the unemployment fund went up from 2,233bn ROL to 2,630.8bn ROL. ZF