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.
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