Under revision bill, gov't revenues to increase by 2.25 billion lei, expenses by 285.7 million lei

In its latest budget revision bill, the Ministry of Public Finance (MFP) projects an increase by 2.251 billion lei in the 2019 government revenues and by 285.7 million lei in the public expenses. According to the bill, published on Tuesday morning on the MFP website, in the case of revenues, the influence is mainly reflected on the following categories of income: profit tax +1.608 billion lei, as a result of measures taken by the National Tax Administration Agency (ANAF) and also of improved collection of tax on bank profits; other taxes on profit, income and capital gains of legal entities +86.2 million lei; other taxes on profit, income and capital gains of individuals + 130.8 million lei; rates and taxes on property +352.9 million lei, as a result of adding to the budget estimated revenues from tax on bank assets. The value added tax (VAT) should reach projected level as a result of measures taken by ANAF in order to increase collection and compliance, but also of the effects of financial restructuring measures, which gives -2.9 billion lei representing amounts deducted from VAT for 2019 to finance the expenses of the local administrations. In the case of excise duties, an additional 481.7 million lei is expected as a result of an increase in the total excise duties on cigarettes and the introduction of a tax on soft drinks with a high content of sugars in the category of products subject to non-harmonised excise duties; other general rates and taxes on goods and services should provide an additional 271.5 million lei. In the chapter on taxes on the use of the goods, authorisation of the use of goods or on the conduct of activities a minus of 65.2 million lei is expected; in regard to the tax on foreign trade and international transactions a surplus of 67.3 million lei should be expected, while social security contributions should provide a plus of 79.8 million lei, and non-tax revenues should increase by more than 1.495 billion lei. The amounts received from the European Union/other donors in payments and pre-financing related to the financial framework 2014-2020 should be down by 1.155 billion lei, while other amounts received from the EU for operational programmes under the convergence objective should go up 1.8 billion lei. On the other hand, 2019 appropriations should increase by 285.7 million lei; the personnel expenses should decrease by 136.5 million lei; expenditures on goods and services should increase by 88 million lei; subsidy outlays should be cut by 381.3 million lei; transfers between public administration units should increase by 1.345 billion lei; other transfers by 1.222 billion lei; outlays for projects financed by post-accession non-reimbursable external funds should decrease by 170.9 million lei; social security expenses would be reduced by 421.4 million lei; outlays for projects financed by 2014-2020 post-accession non-reimbursable external funds should decrease by 1.867 billion lei; other expenses should increase by 62.3 million lei; reserve funds would be increased by 566.4 million lei; expenses related to programmes on reimbursable financing should decrease by 59.9 million lei; capital expenditures should decrease by 32.3 million lei; repayments of external and internal loans should increase by 70.6 million lei. Government's aggregate revenue is expected to increase by 3.752 billion lei. The budgets of the general aggregate budget that should report increases of revenues are: the national budget + 2.251 billion lei; the local administration's overall centralised budget + 3.719 billion lei; the unemployment insurance budget + 834.3 million lei; the budget of the Single National Health Insurance Fund +45.1 million lei. Decreases in revenues should occur in the social security budget - 1.442 billion lei and the budget of organisations/activities wholly and/or partially financed from own revenues - 415.6 million lei. Government's aggregate outlays should increase by 3.959 billion lei, and the cash deficit should stay at 2.76pct of the Gross Domestic Product (GDP) as originally established. AGERPRES (RO - author: Nicoleta Gherasi, editor: Oana Tilica; EN - author: Corneliu-Aurelian Colceriu, editor: Rodica State)