Gandul
At the first 2010 budget revision, approved mid-August, the Government estimated budget revenue would decrease by 3.4 billion lei (EUR1=RON4.2915), while expenditure was expected to drop by RON714 million.
Romania’s consolidated budget posted a deficit of RON20 billion in the January-July period, amounting to 3.9% of the gross domestic product.
Under a loan agreement signed with the International Monetary Fund, Romania pledged to reduce its budget deficit to 6.8% of the GDP this year, from 7.2% of GDP in 2009. With the view to increasing budget revenues and consolidate the country’s economy, the Government implemented a series of fiscal measures, the increase of the VAT level being one of them.