“The goal of the next budget formulation is to adjust budget and current account deficits to sustainable levels in terms of financing,” a government press release indicates. “Macroeconomic stability and maintaining attractiveness for investments are important goals for the government in the coming period. That is why measures to limit public administration spending and increasing EU fund absorption are required to raise public investments and improve the business environment,” the release states.
According to government sources, the cabinet has not yet made a decision regarding the budget draft for 2009, and is waiting to see the budget execution for 2008 (funds that entered the state budget and the way these were spent) before the 2009 fund allocation is set.
According to Prime Minister Emil Boc, preliminary data shows that the budget deficit widened to almost 5 percent of gross domestic product (GDP) in 2008, while economic growth amounted to 8.3 percent.
