Romanian lawmakers endorse 2023 budget planning with 4.4% of GDP deficit

Romanian lawmakers, with 251 votes against 115 and three abstentions, endorsed on December 14 the 2023 budget planning as drafted by the Government, with only minor amendments.

Thus, the Executive expects to bring the public deficit from 5.7% of GDP in 2022 to 4.4% in 2023, and it counts for this, to a large extent, on inflation. The Fiscal Council, however, estimates that the provisions inked by the Government will lead to a deficit of 5.7% of GDP.

The budget planning for 2023 is drafted based on assumptions of moderate 2.8% GDP (compared to 1.8% projected by the EC under the Autumn Forecast) growth and still significant 9.6% average inflation (10.2% under the Autumn Forecast).

The public deficit would come under the 3%-of-GDP threshold in 2024, helped by resumed economic growth (+4.8%).

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