Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at [email protected] 

 

Romania’s FinMin revises public deficit for this year to 9.1% of GDP

Romania's Finance Ministry operated the third budget revision this year, envisaging a public deficit of RON 96 billion (EUR 19.8 bln), or 9.1% of the year's GDP, up from 8.6% of GDP in the previous revision adopted in August.

The budget planning assumes 4.2% GDP contraction, compared to 3.8% expected in August, finance minister Florin Citu announced in a press conference, quoted by News.ro.

This third revision is visibly more optimistic than the European Commission's Autumn Forecast, which includes expectations for a 10.3% of GDP public deficit and 5.2% GDP contraction.

However, the EC's forecast was drafted under the worst-case scenario, including all the social benefits (including a 40% pension hike) passed by the Parliament.

For next year, the Government targets a 7% of GDP deficit, minister Citu said.

Speaking of this year's budget, he expressed satisfaction with the revenues in the first ten months of the year, which were higher than in the same period last year.

He estimated that the full-year revenues would hit RON 337 bln (close to EUR 70 bln) or 32.2% of GDP, including the transfers from the European Union's budget.

The third budget revision means a public deficit some RON 5 bln (EUR 1 bln) wider than envisaged in August.

The Ministry of Development (RON 1 bln), Agriculture Ministry Agriculture (RON 1.1 bln), and Health Ministry (RON 1.1 bln) will get extra funds.

Another RON 1.2 bln will go to the public healthcare insurance house (CNAS) to finance the additional costs for treating COVID-19 patients.

Finally, the Government's reserves, generally used for discretionary spending, were supplemented by RON 1.1 bln.

Meanwhile, the Economy Ministry and Finance Ministry lost some of the funds initially allotted to them. 

(Photo: Gov.ro)

[email protected]

Normal
Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at [email protected] 

 

Romania’s FinMin revises public deficit for this year to 9.1% of GDP

Romania's Finance Ministry operated the third budget revision this year, envisaging a public deficit of RON 96 billion (EUR 19.8 bln), or 9.1% of the year's GDP, up from 8.6% of GDP in the previous revision adopted in August.

The budget planning assumes 4.2% GDP contraction, compared to 3.8% expected in August, finance minister Florin Citu announced in a press conference, quoted by News.ro.

This third revision is visibly more optimistic than the European Commission's Autumn Forecast, which includes expectations for a 10.3% of GDP public deficit and 5.2% GDP contraction.

However, the EC's forecast was drafted under the worst-case scenario, including all the social benefits (including a 40% pension hike) passed by the Parliament.

For next year, the Government targets a 7% of GDP deficit, minister Citu said.

Speaking of this year's budget, he expressed satisfaction with the revenues in the first ten months of the year, which were higher than in the same period last year.

He estimated that the full-year revenues would hit RON 337 bln (close to EUR 70 bln) or 32.2% of GDP, including the transfers from the European Union's budget.

The third budget revision means a public deficit some RON 5 bln (EUR 1 bln) wider than envisaged in August.

The Ministry of Development (RON 1 bln), Agriculture Ministry Agriculture (RON 1.1 bln), and Health Ministry (RON 1.1 bln) will get extra funds.

Another RON 1.2 bln will go to the public healthcare insurance house (CNAS) to finance the additional costs for treating COVID-19 patients.

Finally, the Government's reserves, generally used for discretionary spending, were supplemented by RON 1.1 bln.

Meanwhile, the Economy Ministry and Finance Ministry lost some of the funds initially allotted to them. 

(Photo: Gov.ro)

[email protected]

Normal
 

Romania Insider Free Newsletters