Romania revises 2013 budget raising deficit target to 2.5% of GDP.

By bne IntelliNews October 31, 2013

Romania’s government raised this year’s budget deficit target to 2.5% of economic output from 2.3% under a second revision of the 2013 state budget approved on Oct 30, Mediafax news agency reported citing Prime Minister Victor Ponta .

One of the main reason for the higher budget gap is the need to provide co-funding to EU-financed projects, the finance ministry has earlier said.

Under the second budget revision, estimated revenues were reduced by RON 3.4bn (EUR 768mn) and expenditures by RON 2.2bn. The budget deficit is seen at RON 15.9bn and the GDP at RON 625.6bn.

Ponta has earlier said the budget revision is driven by lower-than-planned revenues. Latest data from the finance ministry showed the nine-month budget revenues rising by 4.4% y/y to RON 147.3bn and expenditures increasing by 4.8% y/y to RON 155.4bn. The budget deficit stood at 1.3% of GDP, up from 1.2% a year ago.

The second budget revision has been agreed with the IMF and the European Commission. An IMF team is currently in Bucharest to make the first review of the funds EUR 2bn stand-by agreement with Romania.

The government made in July the first revision of this year’s budget raising the deficit target to 2.3% from 2.1%.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Romania’s BRD bank reports smaller profit but strong lending in Q1

BRD Groupe Société Generale group, which operates Romania's fourth-largest bank by assets, reported its net profit dropped by 4.6% y/y in Q1, but said ... more

APS, EBRD buy €400mn sub-performing Romanian loans from Piraeus

The European Bank for Reconstruction and Development (EBRD) announced that alongside debt recovery specialist APS it is taking over a ... more

Moldova’s largest lender maib puts Bucharest exchange listing on hold

The largest bank in Moldova, Moldova Agroind Bank (main), announced it is postponing its plan to list on the Bucharest Stock Exchange (BVB) because certain provisions in Moldovan legislation make the ... more

Follow Us On

Most Read

  1. Shocking trial of ex-minister has shifted domestic violence attitudes in Kazakhstan, says brother
    8 days ago
  2. RAGOZIN: Exhausting Russia, strategies and fantasies
    7 days ago
  3. Live fish fall from the sky in Central Iran - video
    5 days ago
  4. Turkey reportedly still loading Azerbaijani oil for Israel despite “total trade ban”
    5 days ago
  5. April 2024 sets global moisture record
    2 days ago
  1. Iran vs Israel: Who is better equipped for war?
    27 days ago
  2. Saudi Arabia to scale back plans for Neom city
    1 month ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    23 days ago
  4. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    23 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    6 months ago

Reports

Dismiss