Thursday, November 6, 2008

Romanian Government Revenue Rises 29% on Income Tax Collection

By Adam Brown

Nov. 5 (Bloomberg) -- Romania's consolidated state budget revenue rose an annual 29 percent in the first 10 months of the year as economic growth, the fastest in the European Union, boosted tax collection.

Revenue increased to 128 billion lei ($45 billion) from 99 billion lei in the same period last year, the Finance Ministry said on its Web site today. The figures include income of local governments and collection of social security taxes.

Economic growth accelerated to 9.3 percent on the year in the second quarter and wages increased an annual 24.6 percent in September, increasing income and value-added tax revenue.

Finance Minister Varujan Vosganian has said pension increases approved by Parliament in September may force the government to miss its budget deficit target of 2.3 percent of gross domestic product this year. Wage increases of 50 percent for teachers, also approved by Parliament against the government's advice, will ruin next year's deficit target of 2 percent of GDP, he said.

To contact the reporter on this story: Adam Brown in Bucharest at abrown23@bloomberg.net

1 comment:

Anonymous said...

i was doing a country report on romania.. your information helped a lot.. i think i better check out the rest of the site!