Government budget balance
Romania's government deficit ten months into 2019 is 2.84% of the Gross Domestic Product (GDP), a level that exceeds the estimate for the whole year, and if we do nothing in the next month and a half the deficit will exceed 4%, Finance Minister Florin Citu told AGERPRES on Thursday. "The deficit nine months into the year should have been 2.28%, but budget implementation at 9 months is 2.60%.
Fitch Ratings has affirmed Romania's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, according to a Friday release of the credit ratings and research agency. Romania's Country Ceiling was affirmed at 'BBB+', Short-Term Foreign-Currency IDR affirmed at 'F3' and Short-Term Local-Currency IDR affirmed at 'F3', according to the release.
President Klaus Iohannis stated on Thursday that the former Government left a budgetary deficit of 29 billion and underscored the need for firm and efficient policies, to get the economy and public finances back on track, back to balance and sustainability.
The real budget revision will be probably carried out in November, considering the evolution of certain spending categories, the National Trade Union Bloc (BNS) said in a statement; the union organization cautions that shifting the budgetary pressure to the last two months of the year means an unjustified postponement that is dangerous for budgetary stability.
The latest budget revision bill secures the full payment of public wages, pensions and investment projects, and nobody has to worry about it, Finance Minister Eugen Teodorovici said at the end of a Government meeting on Monday. "The Gross Domestic Product (GDP) has passed the 1-billion-leu mark for the first time. Where the Government took some measures, results were seen.
Romania's Q1 2019 government deficit is 0.5 percent of the Gross Domestic Product (GDP), while the percentage reported on Friday by Eurostat of 4.5pct of GDP quarterly is calculated against the seasonally adjusted ESA balance by reference to the quarterly GDP, according to the Romanian Ministry of Public Finance (MFP).
President Klaus Iohannis on Wednesday urged the government to take measures for rapid consolidation of public finance and collection of the government revenues, arguing that vulnerabilities are widening. "You may remember me having resubmitted the budget for re-examination to Parliament.