Romania’s Current, Invest Spending In Q1 Cut To Match Deficit Target

The budget deficit stood at about 8.15 billion lei (EUR1=RON4.1430) in the first quarter, slightly below the target agreed with the IMF of RON8.25 billion, according to Mihai Tanasescu.

Tanasescu said budget revenues were lower than expected and the Government was forced to cut expenditure.

„Perhaps current expenses were reduced, or maybe the investment costs,” he said.

Over the next quarters, discussions between Romanian officials and the IMF will focus on spending and on stepping up budget revenue collection, Tanasescu said.

„The first quarter is generally weaker,” he added.

An IMF mission is currently in Bucharest to review Romania’s performance under a EUR13 billion stand-by agreement.

Romania has pledged to bring the general government deficit to 5.9% of the gross domestic product this year from 7.4% of the GDP in 2009.