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Romania Asks IMF To Allow Higher Budget Deficit At 7.8% Of GDP – Sources

Romania has asked the International Monetary Fund to allow it run a higher budget deficit at 7.8% of the gross domestic product this year, due to delays in applying spending cuts aimed at keeping the deficit in leash, people familiar with the matter told MEDIAFAX Thursday.
Romania Asks IMF To Allow Higher Budget Deficit At 7.8% Of GDP - Sources
06 nov. 2009, 10:24, English

„It is highly likely the IMF will accept a budget deficit of 7.8% of the GDP. It could be of 7.7%-7.9% (of the GDP),” the mentioned sources said.

In August, Romania and the IMF agreed on a budget deficit of 7.3% of the GDP this year, nearly double the initial 4.6% cap set in the spring.

On Thursday, secretary of state with the Labor Ministry Mihai Seitan said Romania’s budget deficit will most certainly exceed the 7.3% of GDP target, as the time to apply the proposed spending cuts is running short.

Seitan said the Constitutional Court’s decision acknowledging government-drafted laws on the wage bill and the reorganization of public institutions came too late and the authorities will not be able to apply them in due time.