The 2021 state budget was executed with a deficit of 4.7 billion lei (or 1.96% of the GDP) instead of the forecasted 11.8 billion, according to the report on the 2021 budget execution, approved by the government on Wednesday.

According to the report, budget revenues amounted to 49.4 billion lei, 3.5 billion lei (7.7%) more than approved. Compared to 2020, they increased by 10.9 billion lei (28.3%). Expenditures amounted to 54.1 billion lei, or 3.5 billion lei (6.1%) less than planned.

The public debt as of December 31, 2021 constituted 77.7 billion lei (32.1% of GDP), recording a decrease by 1.9 p.p. as compared to the situation at the end of 2020. Account balances as of December 31, 2021 amounted to about 9 billion lei.

The explanatory note reads that last year's budget execution took place against the backdrop of the pandemic and energy crisis.

"However, the government promptly responded (to the challenges) by introducing measures to support both businesses and household consumers. In order to financially support these measures, the state budget law was amended three times. Last year was also marked by the resumption of external funding, which ensured the continuity of institutional reforms, recovery of the country's economy and allocation of substantial funds for health care, social protection, as well as economic reforms," the document says.