Romania’s Government passed on August 12 the first revision of the budget planning for 2019.
The budget deficit is projected to remain in line with the initial planning at 2.76% of GDP, but the nominal GDP was revised upward by 0.83% compared to the initial scenario to RON 1,031 billion (approximately EUR 217 billion).
Finance minister Eugen Teodorovici assured, after the executive passed the bill, that the “positive” budget revision keeps intact the funds needed for the timely disbursement of wages and pensions, Mediafax reported.
The RON 1 bln (EUR 210 mln) cut in the budget of the Education Ministry, the deepest downward revision, was caused by “initial overestimation of the payroll” and the ministry’s failure in implementing the “I go to school” project aimed at disbursing EUR 50 vouchers to each pupil this autumn.
The Fiscal Council, however, warned that the Government’s budget revision is unrealistic and the deficit will end, most likely, somewhere between 3.4% and 3.7% of GDP.
The Board of Directors of the Romanian Association of Cities expressed on August 8 their indignation about the budget...