Romania’s budget deficit to exceed 4 pct of GDP

Romania’s budget deficit will exceed 4 percent of GDP this year without additional fiscal measures, independent experts estimate, according to Business-Review.eu.

After the first six months of the year,Romania’s budget deficit hit 1.94% of GDP.

“In fact, so far in 2019, both the deficit numbers and execution pattern seem to resemble 2011 when we closed the year with a budget deficit of 4.2 percent of GDP,” he added.

The nominal deficit stands at RON 19.9 billion and this means that if it were to stay within the 3 percent deficit limit, the government has just under RON 11 billion of deficit spending left for the remaining six months of 2019.

Ionuţ Dumitru, chief economist at Raiffeisen Bank, estimates that the government should find additional revenues of about RON 10 billion in order to maintain the deficit at 3 percent of GDP.

“Given the six-month budget execution and the pattern existing in the first semester, the budget deficit will reach about 4.5 percent of GDP this year,” Dumitru said, cited by Economica.net.

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