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Romania’s Govt May OK Second Budget Revision In June

Romania’s government may revise its consolidated state budget for the second time in June and give more funds to its ministries, following better-than-expected revenues in the first quarter of this year, Romanian Finance and Economy Minister Varujan Vosganian said Wednesday.
Romania’s Govt May OK Second Budget Revision In June
09 apr. 2008, 12:42, English

The latest finance ministry data indicate Romania’s budget revenues rose 51% on the year in the January-March period, to 37 billion lei ($15.8 billion) from RON24.5 billion revenue in the same period of 2007.

Romania’s government has already made one budget revision this year and lowered the country’s budget deficit ceiling to 2.3% of gross domestic product from 2.7% of GDP to keep it in line with European Union requirements.

The European Commission warned Romania late January that it may launch an excessive deficit procedure against the country as the 2008 deficit is likely to exceed the E.U. limit of 3% of GDP.

Under Brussels calculations, the country’s budget deficit of 2.7% of GDP stands at 3.2% of GDP, crossing the EU’s deficit limit.

Vosganian also said Romania must implement prudential and predictable measures to achieve a budget deficit of 0.9% – 1% of GDP in 2010 to comply with E.U. requirements to join the euro-zone.

Under its euro-zone entry timetable, Romania aims to enter the Exchange Rate Mechanism, or ERM-2, in 2012 and to participate in the ERM-2 for a period of two-years before adopting the single European currency in 2014.