Romania to cut public investments until yearend to meet deficit target

The Romanian government seeks to cut as much as possible its expenses by the end of the year, including by putting on ice as many public investments as possible, in order to meet the new budget deficit target of 5.5% of GDP, Digi24 reported, quoting sources familiar with the matter.

Earlier over the weekend, Ziarul Financiar reported that the government is considering skipping all budget revisions this year and using its reserve funds entirely in order to support the expenditures of the ministries that need more money.

A draft bill published by Digi24 shows that until the end of the year, expenses on consulting services, rent or the purchase of furniture will be stopped. Festivals and concerts are prohibited, except for those at the end of the year. At the same time, investments financed from the state budget are stopped.

The emergency ordinance is to be introduced in the next government meeting this week.

The measures are taken before the budget correction, Digi24 comments (assuming a budget revision will still be operated), where the new budget deficit target will also be passed.

The deficit will increase from 4.4% of GDP, which was the target set at the beginning of the year, to 5.5-5.7%, prime minister Marcel Ciolacu said recently.

(Photo source: Gov.ro)