Romania 1Q Budget Deficit At 1% Of GDP

The first-quarter cash deficit includes the results reported by Romania’s public roads authority and CNADNR and the shares of investment fund Fondul Proprietatea, said Gheorghe Gherghina, state secretary at the ministry.

He said the ESA deficit includes the results of a series of state-run companies, including Romania’s largest debtor CNH.

Gherghina said the government will make the year’s first budget revision late July or early August.

Romanian government will amend budget deficit calculations to include the debts of 30 state-run companies, as well Fondul Proprietatea’s shares, according to the country’s technical memorandum of understanding to a follow-up deal with the International Monetary Fund.

The budget deficit will be monitored quarterly, and the authorities will consult with IMF staff on corrective measures in the event of shortfalls in government revenue and financing, the government said in its memorandum.

Romania estimates a budget deficit of 4.4% of GDP in 2011, narrower from 6.5% of GDP in the previous year.