RRI Live!

Listen to Radio Romania International Live

Budget deficit on the rise

Romania’s budget deficit has increased, but the Government says it will fall within the set range.

(foto: pixabay.com)
(foto: pixabay.com)

, 27.03.2024, 14:00

The warnings regarding the consequences of the growth of Romania’s budget deficit have become increasingly frequent and come from various directions, from European bodies, as well as from experts and analysts. There is nothing speculative about them, because they are based on numbers. The latest data in this regard were provided by the Ministry of Finance, according to which, after the first two months of the year, the budget deficit reached almost 29 billion lei, the equivalent of some 6 billion euros, which account for 1.67% of the Gross Domestic Product.

Compared to the same period last year, it is almost double. Total revenues in January and February were higher by more than 17 percent compared to the first two months of 2023, being mainly supported by the evolution of collections from insurance contributions, VAT, European funds, payroll tax and excise duties, but expenses were much higher, increasing by over 27%. “The deficit is not a catastrophe,” said Prime Minister Marcel Ciolacu, in an attempt to ease analysts’ fears. He believes that, at the end of the year, Romania will fall within the established range.

The budget was built on a budget deficit estimated at 5 percent of the GDP, which the opposition termed, however, as unrealistic, stating that the revenues were overestimated and expenses underestimated. The pace of growth will be sustained, the prime minister is convinced, optimistically anticipating that Romania will have the highest economic growth in Europe this year. And it will not be an economic growth based on consumption, it will continue to be triggered by investment, Marcel Ciolacu believes.

On Monday, the European Commission published an in-depth analysis for 6 of the member states, including Romania. In our case, the community executive warns that Romania continues to face vulnerabilities related to the accounts of public finances and the external balance. High public and current account deficits, as well as the high inflation rate, which are all above pre-pandemic levels, make the economy potentially vulnerable to shocks, the European Commission points out. It notes that progress were made in narrowing the current account deficit in 2023, mainly on the back of monetary policy tightening and weaker private consumption, but with policies unchanged, risks related to its external position are expected to stay high in the following years.

The document also reads that the pursuit of a credible fiscal consolidation strategy is the key priority of the policies aimed at mitigating the risks to the stability of the economy. This strategy will require the full implementation of the fiscal-structural reforms included in the National Recovery and Resilience Plan, especially those aimed at a structural increase in government revenues and a much stricter budget execution, states the analysis of the European Commission. (MI)

Maia Sandu (Photo: presedinte.md)
Today in the News Monday, 04 November 2024

Moldova stays on path to Europe

Moldova’s pro-European president Maia Sandu won a new  4-year term in Sunday’s second round run-off, with over 55% of the votes cast in the...

Moldova stays on path to Europe
The head of the Permanent Electoral Authority (AEP), Toni Grebla
Today in the News Monday, 04 November 2024

Election campaigns in Romania

    The campaign for the general election in Romania started last week, at midnight on Thursday, and will end on 30 November. During this...

Election campaigns in Romania
November 1 - National Radio Day
Today in the News Friday, 01 November 2024

Radio Romania 96

Radio Romania has celebrated 96 years since it first entered the listeners houses from Romania and abroad. On November 1 1928 the Romanians were able...

Radio Romania 96
(Photo: pixabay@Engin_Akyurt)
Today in the News Thursday, 31 October 2024

Romanians’ concerns

Romanians and Austrians are the most satisfied with their lives among the inhabitants of Central and Eastern Europe, but the former are significantly...

Romanians’ concerns
Today in the News Thursday, 31 October 2024

Republic of Moldova, crucial final

On November 3, the citizens of the Republic of Moldova have to choose, for the position of head of state, between the pro-European Maia Sandu, the...

Republic of Moldova, crucial final
Today in the News Wednesday, 30 October 2024

Drones, a security issue

The Romanian Ministry of National Defense has placed under decisional transparency a bill that improves airspace security measures. The bill, which...

Drones, a security issue
Today in the News Wednesday, 30 October 2024

The Fugitive Law is constitutional

The Constitutional Court of Romania (CCR) has rejected the referral of the High Court of Cassation and Justice (ICCJ) in relation to the so-called...

The Fugitive Law is constitutional
Today in the News Tuesday, 29 October 2024

Challenges of an ageing population

Romanians are getting fewer and older.   The population of Romania in mid-2024 was 21,779,000, down 1% compared to June 1, 2023. According to...

Challenges of an ageing population

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company