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Romania’s Govt OKs ’07 Budget Def At 2.4% Of GDP Vs 2.7%

The Romanian government has approved on Monday the budget revision which lowers this year’s general consolidated budget deficit to 2.4% of gross domestic product, from 2.7% of GDP, sources from the Economy and Finance Ministry said Monday.
Romania’s Govt OKs ’07 Budget Def At 2.4% Of GDP Vs 2.7%
19 nov. 2007, 14:31, English

The Economy and Finance Ministry said late Saturday that the objective of this new revision is to adapt the budget construction with the other macroeconomic targets.

Romania’s central bank governor Mugur Isarescu said early November during a Parliament debate that Romania should start tightening its economic policies in order to avoid an abrupt correction from the market, citing risks of increasing foreign deficit.

Also, Romania’s consumer price index rose by 0.97% on the month in October, boosting the annual index to 6.84%, almost two percentage points above the central bank’s upper limit of 5%.

The European Union has warned newcomer Romania that it may face disciplinary action as its 2007 deficit is likely to exceed the E.U. limit. According to E.U. accounting methods, Romania’s budget deficit will total 3.2% of GDP this year.