H1 budget deficit, 0.8% of GDP

The general consolidated budget deficit reached 0.8% of GDP in the first half, with the state budget, the social security budget and the health care insurance fund witnessing significant negative balances. Total revenues were of 260,162.2bn ROL, up 9.2% from the same time last year, while spending, worth 274,926.1bn ROL was slower to progress, gaining only 6.8%, according to the Finance Ministry. The authorities set 2.65% of GDP as this year’s budget deficit ceiling. The negative balance in the first half, 14,763bn ROL, was 10.7% lower compared to H1, 2002. Unemployment insurance budget saw 1,263bn ROL surplus, while the local budgets registered 5,751bn ROL in positive balance. Still, the state budget spent 16,524bn ROL more than it made. Social security budget in its turn came out short of 2,611bn ROL, as explained by the Ministry. VAT-related revenues gained 36.4% in nominal terms, totalling 61,403bn ROL, against an average first half inflation of 15.8% compared with 2002. ZF