Romanian PM announces 1.2% budget deficit at 10 months

Romania had a budget deficit of 1.2 percent of its Gross Domestic Product in the first ten months of the year, the Prime Minister Victor Ponta (in picture) announced. Also, the nine-month deficit was of of 1.18 percent of the GDP, or some EUR 1.58 billion, compared to a 2.4 percent of GDP deficit during the same period of 2011.

In the first ten months this year, Romania invested 6.4 percent of its GDP, close to the 6.5 percent of the GDP in 2011, while expenses for public sector employees were at the same level as last year. The increase in public sector salaries will be reflected in 2013 and was negotiated with the International Monetary Fund (IMF). Romania agreed with the IMF to keep the budget deficit under 2.2 percent of the GDP, from 4.3 percent in 2011. The estimated GDP for this year is of EUR 137 billion. editor@romania-insider.com