Romania’s Budget Deficit At 2.4% After 3rd Budget Revision – Sources

The Ministry of Agriculture will get funds to subsidize farmers and for financial incentives given to youngsters deciding to move to the country, the Justice Ministry will get some 700 million lei (EUR1= 3.6897) to pay salaries of magistrates reclaimed in court.

The money assigned to the Transport Ministry will go to infrastructure, while the Interior Ministry will use its funds to cover the price hike of fuel used by thermal plants, for the police’s salaries and for various projects developed by local and county authorities.

The Defense Ministry will use the money to pay the militaries in the conflict zones and to buy military equipment.

Official sources said last week that the Romanian government is considering revising this year’s budget for the third time, giving more money to household heating and social aid.

Economy and Finance Minister Varujan Vosganian said last week that the draft regarding the third budget revision this year will be presented in the Government session this week.

In mid-July, the government revised upward this year’s budget by RON842 million, due to higher-than-expected GDP at the end of the year, but kept its 2.3% of GDP budget deficit target unchanged.

The Romanian budget deficit was 0.64% of gross domestic product in the first seven months of 2008, Finance Ministry data showed, while in the first half of the year, the budget deficit stood at 1.18% of GDP.

In nominal terms, the deficit was RON3.06 billion in January-July, compared with RON5.19 billion at the end of June.