Romania’s budget deficit in first nine months, more than double compared to last year

Romania recorded a consolidated budget deficit of RON 16.8 billion (EUR 3.6 billion) in the first nine months of this year, representing 1.77% of the estimated Gross Domestic Product (GDP) for 2018. The deficit was 2.5 times higher in nominal terms and 2.2 times higher as a percentage of GDP compared to the same period of 2017, according to data from the Finance Ministry. The consolidated budget revenues reached RON 205 billion (EUR 44 billion), representing 21.7% of the GDP, up 13.6% in nominal terms compared to the first three quarters of 2017. Meanwhile, the expenses increased 18.4% year-on-year, to RON 221.7 billion (EUR 47.6 billion), as the state’s personnel expenses were 25.3% higher and social assistance expenses increased by 12.5%. The International Monetary Fund (IMF) expects Romania’s budget deficit to reach 3.6% of the GDP this year, over the 3% target, according to the institution’s resident representative for Romania and Bulgaria Alejandro Hajdenberg, local Hotnews.ro reported. He said the IMF would have a mission to Romania next week to evaluate the macroeconomic perspectives, the budget projections for 2019 and the measures taken for reducing the deficit this year. Romania’s budget deficit in first eight months, highest in eight years editor@romania-insider.com (photo source: Pixabay.com)