RO public deficit to rise “significantly” under first budget revision

Romania will likely record a significant increase in the budget deficit, president Klaus Iohannis said on Monday, April 6, referring to the imminent revision of the budget planning for this year.

“More money is needed in the public health sector, but more money is also needed for social assistance, technical unemployment and unemployment - all must be paid,” he added.

It is going to be a complicated situation, “not likely to settle by itself” so the Government must run a thorough analysis, the president concluded.

Thus, the budget revision will not only tackle short-term targets. The Government should re-estimate the full-year revenues, likely to be lower than initially anticipated, and also the expenditures that are going to be much higher, president Iohannis stressed.

Romania’s Government drafted the 2020 budget planning last December, based on 4.1% GDP growth scenario and envisaging a 3.6% of GDP public deficit.

Prime minister Ludovic Orban has announced that the topic would be brought on the agenda in the government meeting on Monday, while the inputs from ministries are going to be received during the week. The first revision of this year’s budget planning might be ready by the end of this week, Orban said.

(Photo: presidency.ro)