Romania’s FinMin says 6%-of-GDP deficit target is feasible this year

Finance minister Marcel Boloș admitted on November 23 that he does not believe Romania can keep the public deficit close to 4.4% of the Gross Domestic Product (GDP) this year, but he is confident that the 6%-of-GDP target remains feasible. This is, however, not particularly encouraging since the figure was envisaged by the independent analysts, generally core conservative.

As for next year’s budget planning, minister Boloș didn’t disclose any element, not even the planned deficit – a target particularly expected by analysts given the complicated fiscal situation created by the new Pension Law.

Boloș said, however, that depending on the impact of the fiscal package that comes into force on January 1, supplementary corrective measures will be decided, Economedia.ro reported. He said that the expected positive impact of the fiscal package would be RON 16 billion in 2024 (nearly 1% of GDP).

On the same topic, prime minister Marcel Ciolacu announced a budget revision for the end of the year, according to Bursa.ro.

PM Ciolacu said that the indicators for the draft budget for next year will be approved in the next meeting of the executive.

(Photo source: Inquam Photos/George Calin)