Romania's public deficit exceeds 2.9% of GDP in January-April

Romania's general government budget deficit hit 2.94% of GDP in January-April (RON 56.2 billion, or EUR 11 billion), up from 2.3% of GDP in Q1, according to Ziarul Financiar and Profit.ro citing operative data from the Finance Ministry.

The revenues increased by 16% y/y to a record level of RON 59 billion in April, while the expenditures remained roughly steady at RON 71 billion, according to Ziarul Financiar.

The public deficit in January-April 2024 was 3.23%, including the May pensions paid last year in advance in April (0.53% of GDP), according to Profit.ro – which concludes a real deterioration of the budget execution compared to the 2.7%-of-GDP corrected deficit in January-April 2024.

The Romanian government must reduce the ESA budget deficit to 7% of GDP this year, in line with the 7-year fiscal plan agreed with the European Commission. However, the first months of the year undermine the target. Romania's fragile sovereign rating has a negative outlook from the three major rating agencies, with the first assessment scheduled for late summer.

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