Romania, IMF Set 1Q 2011 Budget Deficit Target At RON5.7B

The authorities in Bucharest pledged to cut the budget deficit to 4.4% of the gross domestic product in 2011, from 6.8% of GDP predicted for this year, according to the government's additional letter of intent to a EUR13 billion loan signed with the IMF in 2009.

Romania's draft budget for 2011 envisages a deficit of RON24 billion, lower from RON34.65 billion in 2010. Budget revenues are forecast at RON176.35 billion, while expenditure is predicted at RON200.31 billion.

The government reiterated its pledge to bring the budget deficit down to 3% of the gross domestic product in 2012 and said it will continue to limit public spending.

Additional measures will be taken if necessary, the government said in the letter, without specifying the targeted action.

An IMF mission visited Bucharest from October 20 to November 1 to review the country's progress under the loan program and decide whether to disburse new aid, worth around EUR870 million.

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