Government budget balance
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.
Fitch Ratings has affirmed Romania's Long-Term Foreign and Local Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, but warned that the budget deficit might widen to 3.4 percent of the GDP in 2019, a release of the agency informed.
Inflation is an extremely tricky disease that can occur under 'n' shapes, on Monday asserted the National Bank of Romania (BNR)'s governor Mugur Isarescu at the "Inflation in past ten years" conference, adding that the inflationary pressure as well as our deficits are largely structural.
Turkey's central government budget balance recorded a deficit of 62.1 billion Turkish Liras ($13 billion) in the first 10 months of 2018 with a 77.7 percent yearly increase, data from the Treasury and Finance Ministry revealed on Nov. 15.
In the previous Note, we considered the relationship between nominal GDP growth, the fiscal deficit, and the evolution of the debt/GDP ratio. We noted that the math only works if the deficit accurately and truly reflects all the pressures on the stock of debt. In this Note, we can look at this issue in more detail with past data for Greece from 1995-2017.