IMF fails to accept a higher budget deficit to complete investments in infrastructure, minister says

Sursa: NewsIn | Publicat: 03 mai 2010, 21:33

The International Monetary Fund (IMF) will not accept a higher budget gap to assign more money for investments in infrastructure and recommends the government to slash other expenses to invest the money saved, said the Transportation Minister, Radu Berceanu.
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Before attending the discussions with the IMF officials, Berceanu announced he will ask them to raise expenses by 0.4-0.5 percent of the gross domestic product (GDP) to complete investments in infrastructure and warned Romania's economy will compress in 2010 as well if the Fund does not accept a higher budget gap.

The transportation minister said the negotiations were not simple as the country has enough problems regarding the budgetary incomes and the spendings that should not be so large.

The insufficient incomes prompt very big problems, according to Berceanu, who added the issue of slashing the number of employees from the state-owned companies was not tackled on Monday, as expenses cannot be slashed only through dismissals.
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