IMF expects 4.4% budget deficit next year, targets 6.8% in 2009

Romania's budget deficit should reach 4.4 percent next year after the government will take the measures it has promised, said Jeffrey Franks, the head of the IMF mission in Romania. The unitary pay law and changes in the local public finances laws are among the measures which would allow the country to reach this budget deficit. Franks said it was important for the unitary pay law to be adopted until September this year, the same as with the local public finance law. Efforts to reduce fiscal evasion and a cut in costs for state companies are also needed, said Franks. The IMF has agreed for a budget deficit target of 6.8 percent of the GDP, up from the previous 5.9 percent of the GDP. The IMF representative hasn't ruled out the possibility of the fund sending out the fifth and the sixth loan installment together, of these measures will be delayed. The next two loan installments total EUR 900 million and should be delivered mid-June and in September.