Budgetary surplus down two thirds

The general consolidated budget surplus for January and February went down some 6,600bn ROL compared with December 2003, to 3,900bn ROL, 0.18% of the Gross Domestic Product estimated for this year, Finance Ministry data show. A temporary 5,000bn ROL surplus registered by the local budgets compensated the deficits of the social security budget (some 920bn ROL) and of the state budget (some 2,600bn ROL). Consolidated budget deficit revenues amounted to 109,016bn ROL, and total expenses were worth 105,103bn ROL. Revenues were 32.4% higher compared with the corresponding period of last year in nominal terms, while spending progressed 26.8%. The share of the social security contributions in the direct tax-related revenues went down 2.2%, which was likely caused by the 3% cut of such contributions to 49.5% as of January 1. Profit tax-related revenues rose 38.8%, VAT revenues increased 40.6% and excises generated 71.3% higher revenues. The Finance Ministry says the increase in the VAT-related revenues is due to the increased activity volume, as well as to the improvement in collection. Therefore 60% of January’s revenues came from domestic operations conducted in December 2003, when the turnover volume across the industry was 5.2% over against December 2002. ZF