“The deficit will reach 3.5 percent of GDP by year-end, mainly due to excessive spending for pension and salary rises during this electoral year,” said Nicolae Chidesciuc, Senior Economist of ING Bank Romania. He added that nobody is surprised anymore that the 2009 budget deficit will exceed the three percent of GDP psychological threshold. “This is why we need firm measures to cut costs. If the state decides to resort to a loan from IMF [the International Monetary Fund], this initiative will be a wise one and appreciated mainly by foreign investors,” Chidesciuc added.
Dan Chitoiu, President of the National Fiscal Administration Agency (ANAF), said that the state budget cashed in only 69.6 percent of scheduled dues in November 2008, and 74.3 percent of the planned consolidated general budget.
Varujan Vosganian, the Minister of Economy and Finance, said that the budget deficit exceeded its 2.3 percent annual target at the end of November, reaching 2.9 percent of GDP.
