ANAF surpasses revenue target in July
In July, ANAF collected 46 billion lei, which is 881 million lei above the revenue target set by the Ministry of Finance. This helped to recover the collection deficit from June, when ANAF fell short by 879 million lei.
During the first seven months of the year, the Tax Administration collected 264.5 billion lei, exceeding the target set by the Ministry of Finance by 2.1 billion lei to ensure the state budget revenues specified in the Budget Law. The amount of 46 billion lei collected in one month is a new record for ANAF, according to data obtained by Profit.ro.
Changes in garnishment imposed by ANAF on salaries and pensions
ANAF has been collecting well this year, consistently exceeding its targets, so the result in June was surprising and raised some questions.
ANAF will no longer withhold monthly income from salaries/pensions/special allowances at the bank.
ANAF collects 43.36 billion lei in June
Recent reports from the National Agency for Fiscal Administration (ANAF) show that the agency has collected 43.36 billion lei for the state budget in the month of June. This amount is 879 million lei lower than the revenue collection target set by the Ministry of Finance, which was 44.24 billion lei. June is historically a month with high revenues, and in 2024, ANAF’s target of 44.24 billion lei was the highest amount to be collected in the first half of the year. The total revenue for the first six months was 218.55 billion lei, exceeding the target for this period by 1.21 billion lei, thanks to better results in the early months of the year.
Restrictions on cash operations for debtors to the state
Financial authorities are now limiting cash operations for those who owe debts to the state. Daily limits will be set based on the amount owed. The previous monthly record for revenue collection was set in April of this year, with 45 billion lei collected. July is expected to bring new challenges and opportunities for revenue collection.
The Importance of Revenue Collection for Government Finances
July is historically a month with very high revenue collection, as the state receives the majority of dividends from state-owned companies during this time. The revenue collection program outlined by the National Agency for Fiscal Administration (ANAF) for July reflects this expectation. The collection of revenues by ANAF is essential for the stability of public finances. If ANAF collects more than planned, the additional amounts can provide the Government with a wider space for expenditures. On the other hand, if the Tax Administration collects less than planned, falling short of the target can pose problems for the budget and lead to a higher budget deficit.
For the first six months of this year, the Government recorded a budget deficit of 3.6% of GDP, 63.67 billion lei, compared to 2.32% of GDP, 37.21 billion lei, in the first six months of the previous year.
Deficit Target for the Year Exceeded Expectations
The initial deficit target for the entire year was set at 5% of GDP, approximately 87 billion lei. However, recent assessments indicate that this target is no longer considered realistic, with general expectations pointing towards a higher deficit level.
Various factors have contributed to this deviation from the initial target, including unexpected expenditures and revenue shortfalls. As a result, policymakers are now reevaluating their budget plans and considering alternative strategies to address the widening deficit.
It remains to be seen how the government will navigate this fiscal challenge and whether additional measures will be implemented to mitigate the impact of a higher-than-expected deficit on the economy.
