The budget passed in February includes several measures to correct deficit, such as freezing employment and lowering bonuses in the public sector, cutting spending with goods and services, limiting pensions hike to the inflation rate, a three percentage points increase in pension contributions and speeding un excise hikes," the EC forecast, released on Monday, writes.
In 2008, budget deficit amounted to 5.4 percent under European standards. By Romanian standards, the deficit is to be of 4.6 percent of the GDP, as agreed with the International Monetary Fund (IMF).
The economy is to shrink by 4 percent this year and to stagnate in 2010, according to the EC forecast. The figures are consistent with the estimates previously announced by the National Prognosis Commission (CNP) and the IMF. (NewsIn)
