Romania’s finance head tackles budget deficit issue with EU official, says things are under control

The minister on February 13 said the European Commission will refrain from starting the infringement procedure against Romania regarding the budget deficit. The country’s budget deficit last year held a 2.3 percent share in the GDP. If applying European standards, it stood at 2.6 percent.

The government for this year set a 2.7 percent of the GDP target for the budget deficit. Vosganian noted he wants to narrow the budget deficit to 2 percent as he presented the government a plan for cutting budget expenditures by 1.1 billion euros.

Preliminary data show revenues to the state budget last year amounted to 140.4 billion lei. Expenditures totaled 150.7 billion lei. Romania’s budget deficit was of 10.27 billion lei, which translates into a 2.63 percent of the GDP deficit.

Romania’s target this year is of 2.7 percent of the GDP. However, the European Commission showed the country’s public gap could easily exceed the 3 percent threshold stipulated in the Maastricht Treaty.

Source: NewsIn