Prima pagină » English » Romanian Govt To Revise Budget In April Or May

Romanian Govt To Revise Budget In April Or May

Romania's Government will revise in April or May, for the first time this year, the 2009 budget, after the authorities and the International Monetary Fund agreed upon a budget deficit of 4.6% of the gross domestic product, from 2% of the GDP prior forecast, government sources told MEDIAFAX.
Romanian Govt To Revise Budget In April Or May
24 mart. 2009, 15:43, English

“Given the revenue decrease is higher than initially predicted and a severe economic contraction is forecasted, a first budget revision is needed,” the quoted sources said Tuesday.

The IMF delegation in Romania agreed with the Government a budget deficit of 4.6% of GDP in 2009, compared with the 2% of the GDP target included in the budget law, sources close to the talks told MEDIAFAX Monday.

The 2009 budget is built up on a budget deficit of 2% of the GDP and an economic growth of 2.5%.

However, IMF predicts Romanian economy to shrink by 4% in 2009.

The budget spending in 2009 was estimated at 205.5 billion lei (EUR1=RON4.2924) or 35.5% of the GDP, while the revenues were estimated at RON194 billion.

Romanian authorities are negotiating with the IMF, the E.U. and other international institutions a financial package that could amount to EUR19 billion.