FinMin: Romania’s public deficit hits 3.56% of GDP in Jan-Sep

Romania’s general government budget deficit reached 3.56% of the GDP projected for the whole year, finance minister Marcel Bolos announced in an interview with Profit.ro a couple of weeks before the official release.

The tax revenues collected by ANAF and customs authorities came at least RON 20 billion (EUR 4 billion, 1.2% of GDP) below target, he admitted.

The fiscal gap was just under 3% of GDP in the same period last year, when it reached 5.75% at the end of December. This year, the government hopes to keep the deficit under 5.5% of GDP – 1.1pp above the initial target but hopefully enough to convince the European Commission that the fiscal consolidation commenced, although later than desired.

However, the Finance Ministry estimated in the summer a wider 6.8%-of-GDP deficit for this year, and it is unclear whether the stricter public spending in the last quarter of the year will be enough to bring it in line with the revised projection.

A negative budget revision is being prepared these days, the first negative budget revision operated in the country since the latest (2008) financial crisis, minister Bolos confirmed.

(Photo source: Inquam Photos/George Calin)