Romanian FinMin Citu says budget revenues were robust in November

Romania recorded higher tax revenues in November this year compared to the same month of last year, finance minister Florin Citu commented on an optimistic note after the October retail sales figures indicated full recovery. Still, he did not mention a specific annual growth rate for tax revenues.

"This means that the economy is recovering, and I want to thank entrepreneurs and all Romanians because, in a difficult year, we managed to make things work again together," minister Citu said several days before the general elections, local Economica.net reported.

Minister Citu also mentioned the country update that Romania expects from the international rating agency S&P on December 4 (23:00 local time). He argued that the confidence investors showed at the end of November when the country issued EUR 2.5 billion Eurobonds supports hopes for a "positive" decision of the rating agency - which would mean maintaining the BBB- sovereign rating, even with the negative outlook attached.

The other major rating agencies deferred an imminent downgrade that would be justified by the imminent fiscal slippage until the new majority to be formed after the December 6 elections has a chance to reverse the trend and several unsustainable measures, including the 40% pension hike (at this moment under a final review by lawmakers).

The tax revenues in Romania increased by 2.9% y/y in October, after shrinking by 5.6% y/y in January-September, resulting in an overall 4.5% y/y decline in January-October. The public deficit in January-October accounts for 7.05% of GDP, compared to the 9.1%-of-GDP full-year target set by the Government.

(Photo source: Gov.ro)