Romania: Budget deficit at 2.6%, fears it will exceed 3%

Romania: Budget deficit at 2.6%, fears it will exceed 3%

The budget deficit has already reached 2.6% in the first nine months of 2019 and experts expect it to exceed the 3% of GDP threshold by the end of the year. The chairman of the tax board, Daniel Dăianu, warned that without corrections, such as changing the timetable for some of the tax increases already approved, the deficit would exceed 4% next year.

According to Daniel Daianu, the situation is dangerous in the context of the deteriorating international financial situation. The Orban administration seeks to reduce the deficit target beyond this year and return below the 3% threshold next year. The issue was also discussed at a hearing in the Parliamentary Committee of the future Minister of Finance. This year’s budget is based on a deficit of 2.76% of GDP and economic growth of 5.5%.

The value of current financing contracts under the Cohesion Policy for urban SMEs and rural medium-sized enterprises today stands at EUR 1.4 billion, European Finance Minister Roxana Mînzatu announced today. We can contribute USD 6 billion to support SMEs and not just equipment acquisition, but also digitalisation, technology, innovation and business development. I hope from these 6 billion we can support investments intended for non-agricultural businesses in rural areas”, Mînzatu said./ibna