Prima pagină » English » Romania’s ’08 Budget Def To Be Kept Below 3% Of GDP – Ctrl Bker

Romania’s ’08 Budget Def To Be Kept Below 3% Of GDP – Ctrl Bker

Romanian budget deficit in 2008 might be kept below 3% of the gross domestic product, or GDP, the Governor of Romanian National Bank, Mugur Isarescu said Friday, adding that he would like it to be even lower.
Romania's '08 Budget Def To Be Kept Below 3% Of GDP - Ctrl Bker
26 sept. 2008, 13:32, English

Isarescu sees a risk of a slide in budget deficit due to the November elections.

“We know there is a risk and hope the deficit to be lower than 3% of GDP. We would like it to be even smaller. We tightened monetary policy in case of an impact,” Isarescu said.

Romania’s central bank halted its rate increasing cycle after seven consecutive hikes, although it said persistently high inflation called for a tight stance for some time to come.

The Romanian budget deficit was 0.64% of gross domestic product in the first seven months of 2008.

Wednesday, Romania’s government approved its third revision of the 2008 budget, which includes a revenue increase of RON6.4 billion and an expenses increase of RON7 billion. The budget deficit was left unchanged at 2.3% of GDP.

Romania reported economic growth of 8.8% in the first half of the year, driven by 9.3% growth in the second quarter, after a good agricultural year.