Romanian Govt To Revise Budget In April Or May

“Given the revenue decrease is higher than initially predicted and a severe economic contraction is forecasted, a first budget revision is needed,” the quoted sources said Tuesday.

The IMF delegation in Romania agreed with the Government a budget deficit of 4.6% of GDP in 2009, compared with the 2% of the GDP target included in the budget law, sources close to the talks told MEDIAFAX Monday.

The 2009 budget is built up on a budget deficit of 2% of the GDP and an economic growth of 2.5%.

However, IMF predicts Romanian economy to shrink by 4% in 2009.

The budget spending in 2009 was estimated at 205.5 billion lei (EUR1=RON4.2924) or 35.5% of the GDP, while the revenues were estimated at RON194 billion.

Romanian authorities are negotiating with the IMF, the E.U. and other international institutions a financial package that could amount to EUR19 billion.