Romania’s Budget Revision Stipulates Public Jobs Freeze - Sources

Romanian Prime Minister Emil Boc asked ministers to draw up in maximum one week a list of investment projects that need financing, in view of the budget revision and the funds Romania will get after the agreement with the International Monetary Fund and the European Commission.

Boc met part of the ministers before Government’s Wednesday session.

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 previously told MEDIAFAX.

“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 last Tuesday.

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

Romanian Finance Minister Gheorghe Pogea said last week the government revised downwards the 2009 gross domestic product forecast to 531 billion lei (EUR1=RON4.2329) from prior RON579 billion.

During the negotiations with the IMF, the loan program was based on a GDP contraction of 4% in 2009. According to the Romanian party, this is the worst case scenario.