Romania's Govt. officially envisages 4.3%-of-GDP public deficit under revised plan

Romania’s budget deficit will increase to 4.3% of GDP this year under the revised budget planning published by new finance minister Florin Citu on November 27, local Mediafax reported.

The Finance Ministry also published the official budget execution figures for January - October showing a deficit of 2.8% of GDP, up from 2.2% of GDP in the same period last year.

In the revised budget planning, the revenues were revised downwards by RON 18.35 billion (EUR 3.86 bln) compared to the budget version inherited from the Social Democrat Government. The expenses were revised downward as well - but only by RON 2.09 bln (EUR 437 mln), resulting in a net widening of the deficit by RON 16.2 bln (EUR 3.41 bln), or roughly 1.6% of this year’s projected GDP, compared to the level previously targeted (2.86% of GDP).

The ruling National Liberal Party (PNL) has already endorsed the budget revision, which was put up for public debate and should be adopted by the end of this week, prime minister Ludovic Orban, who also serves as PNL president, announced.

Through this revision, the budgets of some ministries will be supplemented: the Ministry of Labor will receive an additional RON 3.9 bln, the Ministry of Health - RON 2.89 bln, and the Ministry of Regional Development - RON 1.7 bln. In contrast, the budgets of other ministries will be cut. Thus, the Ministry of Education will lose RON 2.08 bln, representing mainly funding from the European Union budget that were not absorbed. The Ministry of Internal Affairs will see a budget reduction of RON 1.18 bln, the Ministry of Transport RON will lose RON 1.08 bln, the Ministry of Agriculture - RON 1.06 bln, and the Ministry of European Funds - RON 302 mln.

(Photo source: Gov.ro)