Romania "will fit into the projected budget deficit"

Florin Georgescu, Minister of Finance, said that Romania will fit into the projected budget deficit of 2.2 per cent and it is the fitting certainty in the economic growth prognosis of 1.5 per cent.

Budget deficit throughout the year 2012 will surely target at 2.2 per cent of Gross Domestic Product(GDP), agreed with the International Monetary Fund, assured Finance Minister Florin Georgescu.

After Wednesday's meeting of the Government, Florin Georgescu also said that it is the fitting certainty certain in the economic growth prognosis of 1.5 per cent.

In view of the meeting with the International Monetary Fund delegation , the World Bank and the European Commission, Finance Minister Florin Georgescu said Wednesday following the government session, you that all the agreed parameters at both macroeconomic and microeconomic levels have been completed.

"At the end of June we have a deficit of 1.12 per cent of GDP, lower than in late May, when it was 1.19 per cent of GDP, which means that in June, the sixth month, we recorded a budget surplus of 400 million lei.

"Revenue, as share in GDP are higher at the end of the semester I of this year compared with the corresponding period of the previous year, by 0.5 percentage points, as the expenses are lower by 0.3 percentage points, and, however, investment expenditures increased," said Florin Georgescu.

Also Romania will be included in the budget deficit projected for this year, i.e. 2.2 per cent of GDP, which means, also said Florin Georgescu, half of the last year deficit , one of the causes it is a better use of public expenditure and a better revenue collection.

Also on Wednesday, the Government approved the budgets of income and expenses from more than 40 directions and companies with majority state capital.

It was mainly pursued, said Florin Georgescu, reducing inefficient expenses, arrears losses, in other words efficiency of these units.

Translated by
Denisse-Meda Bucura
MTTLC, Bucharest University