Romania’s budget deficit climbed to 4.5% of the Gross Domestic
Product (GDP) in the first eight months of the year, up by around
one percentage point against the end of July. The deficit widened
amid a decline in revenues and an increase in current expenditures.
Capital expenditures (investment expenditures) fell by around six
per cent compared with January-August 2008.
In absolute terms, the deficit amounted to 22.3 billion RON
(around 5.3 billion euros), whilst at the end of August revenues in
the general consolidated budget stood at 103.3 billion RON (24.5
billion euros), down 6.6% against the same time last year,
according to data published by the Ministry of Finance. Until the
end of the first half of the year, the budget deficit did not
exceed the threshold set with the IMF, but in July and August the
gap between revenues and expenditures widened, approaching the
initial target for the full 2009, 4.6% of GDP. The new budget
deficit target for 2009 agreed upon with the IMF after the first
assessment of the financing agreement sealed with Romania in spring
is of 7.3% of GDP, i.e. almost 8.6 billion euros.

Subiecte #budget defici#GDP