Romania’s consolidated budget posted in 2010 a deficit of EUR 7.8 billion, or 6.5 percent of the estimated gross domestic product, lower than the ceiling agreed with the International Monetary Fund, the Finance Ministry said Thursday. In its financing agreements with the IMF and the European Commission, Romania pledged to keep the budget deficit below EUR 8.1 billion

The deficit narrowed from 7.4 percent of GDP in 2009, due to higher revenue, the ministry said. Budget revenue amounted to EUR 39.5 billion in 2010, up 7.2 percent in nominal terms compared with the previous year. Higher revenue from the sales tax (following a five percentage point increase in July) and the excise duties help offset lower receipts from the personal income and the corporate taxes, according to the finance ministry's data.

In 2011, Romania committed to cut the budget deficit to 4.4 percent of GDP. Joint teams from the IMF and the EU are currently in Bucharest for the final review of a EUR 20 billion financial package secured by Romania in May 2009 and for talks on a possible follow-up deal.

Mediafax