The consolidated budget execution over the first seven months of the year closed with a deficit of 20 billion lei (some 4.7 billion euros), representing 3.9 percent of the Gross Domestic Product, shows data released on Friday by the Ministry of Public Finance (MFP).

Revenues to the consolidated budget stood at 93.3 billion lei, up 1.2 percent, outperforming the execution of the similar period in the year before.

Revenues increased primarily on VAT collections, where the y-o-y difference narrowed from minus 3.7 percent on June 30, 2010 to 0.8 percent; and on excise tax collections, which were 12.3 percent higher to the state budget and up 7.7 percent to the consolidated budget, respectively.

The rise in VAT collections was notable in particular in June and July, whereas the influence of the VAT rate increase from 19 percent to 24 percent will become visible beginning August.