Romania Jan-Sep Budget Deficit At 5.03% Of GDP

In January-September, total revenue to the state budget reached RON116.3 billion, or 23.4% of the GDP, while overall expenditure was at RON141.2 billion, or 28.4% of the GDP, the ministry’s state secretary Gheorghe Gherghina told MEDIAFAX.

End August, Romania’s budget gap stood at 4.5% of the GDP, up by one percentage point from 3.5% of the GDP in July.

Romania secured in spring a EUR19.95 billion financial aid from the International Monetary Fund, the European Union and other international institutions to cope with the deepening recession.

The agreement between Romania and the IMF fixes quarterly performance criteria on this year’s budget deficit, which was initially set at RON24.36 billion, or 4.6% of the GDP.

However, the IMF agreed early August to allow Romania a higher budget cap of 7.3% of the GDP this year, on a sharper-than-expected economic decline.

The Romanian government has revised down its forecast on 2009’s GDP to RON497.3 billion from RON531.2 billion initially estimated, reflecting an economic contraction predicted at 8%-8.5% this year.