Deficit reduction in the United States

President Klaus Iohannis promulgated on Monday the state budget law for 2021, the Presidential Administration announced. The head of state also promulgated the law on the state social insurance budget for this year. According to the Presidential Administration, the 2021 budget will allow Romania to develop in key-sectors, which have often been "ignored" in the past.

The government meets today, Friday, to approve the bills related to the national budget and the state social insurance budget for 2021. Prime Minister Florin Citu said on Thursday that the government deficit target remains set at 7.16%, specifying that, compared to the published version of the draft, there could be some changes in terms of allocations, with more commitment appropriations.

The World Bank increased Turkey's gross domestic product (GDP) projection for 2020, according to its Global Economic Prospects report released on Jan. 5. 

The international financial institution estimates that the Turkish economy grew 0.5% in 2020, up from an estimated 3.8% contraction in June, "amid a substantial expansion in credit," the report said.

The return of GDP to pre-pandemic levels will happen in early 2022, just like almost everywhere in the European Union, Chairman of the Tax Council Daniel Daianu told the regional video conference ZF BRD Budget 2021 today, stressing that he is "almost certain that next year will see economic growth." "It is almost certain that there will be economic growth next year.

The European Commission has recommended Romania to pursue fiscal policies in line with the Council's recommendation of 3 April 2020 that Romania should put an end to the present excessive deficit situation by 2022 at the latest, according to the recommendations in the European Semester Spring package released on Wednesday.

Romania's economy is projected to contract by 6% in 2020 after many years of robust growth, whereas the general government deficit is forecast to increase to around 9.2% of the GDP in 2020, according to the European Economic Forecast - Spring 2020, published by the European Commission (CE) on Wednesday.

The deficit of the consolidated general budget for this year rises to 6.7pct of GDP at the first budget adjustment this year, given that the measures adopted to stimulate the economy represent 3pct of GDP, announced on Wednesday Finance Minister Florin Citu in a statement at the Victoria Palace. According to him, the cash deficit increases by 31.9 billion lei.

Turkey's current account balance posted a deficit of $2.8 billion in December 2019, the Turkish Central Bank announced on Feb. 14.

Official data showed that the figure widened by $1.7 billion from same month the previous year.

The country's 12-month rolling surplus totaled $1.67 billion, the bank said.

Romania will fall under the excessive deficit procedure, something that cannot be avoided and the earliest it can happen is in March, Minister-designate of Public Finance Florin Citu told Monday evening private TV broadcaster Realitatea Plus. "The talks are ongoing with the European Commission. (...) And, yes, Romania will enter the excessive deficit procedure.

Romania closed 2019 with a budget deficit of 4.6 percent of GDP, above the authorities' November estimation, when the second budget adjustment was operated, Finance Minister Florin Citu announced on Tuesday. The only time with a wider budget gap was the crisis year of 2010, when the government ran a deficit of 6.5 percent of GDP. In 2018 the budget deficit was 2.88 percent of GDP.