Romania’s budget deficit should reach 11.2 billion lei (3.3 billion euros) of GDP, against the government’s 10.7 billion lei target. Initial forecasts showed the budget deficit would be at 2.8 percent of GDP.
The budget deficit stood at 1.9 percent of GDP in 2006, 0.2 percent up against the level estimated by the Ministry of Economy and Finance. The European Commission and the International Monetary Fund (IMF) warned several times that the 2007 deficit would exceed 3 percent of GDP.
Economy Minister Varujan Vosganian said the 2008 budget will be based on a GDP of 438.9 billion lei, a deficit of 2.7 percent of GDP and inflation at 3.5 percent.
