Romania’s new finance minister: Not sure we can keep deficit below 3%

The new Government in office in Romania since November 5 will target a 3%-of-GDP budget deficit this year, finance minister Florin Citu announced.

The new finance minister also has to decide if he keeps the head of the tax collection agency - ANAF and wants to have the budget planning for next year drafted, “based on current laws”, by December 15. “Current laws” include the revised Pension Law and the 40% pension hike planned for next September.

“The first priority is the budget rectification and the second is the budget planning for 2020. We see how it goes and then I can say more (about meeting the budget deficit target - e.n.),” Citu said on his first day on the job. “Our ambition is to stay within 3% [of GDP]. You know, after nine months we are at 2.6%,” he stated, according to Ziarul Financiar.

Sources within the Finance Ministry confirmed for Hotnews.ro that the deficit can not be held below 3% of GDP this year and, consequently, the public borrowing should become more intense towards the end of the year.

In related news, Stiripesurse.ro informed that Daniela Pescaru, a state secretary in the Finance Ministry, who has been heading the budget planning department since 2009 and working in the Finance Ministry since 1991, has resigned.

(Photo source: Inquam Photos/Octav Ganea)