ING: Romania Likely To Miss 2011 Deficit Target

Romania has set “ambitious” targets for its 2011 budget, but chances are the government will miss its deficit cap of 4.4% of gross domestic product, because of weaker-than-expected economic performance.

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According to the draft budget, which was obtained by MEDIAFAX last week, the government plans to cut public slashing by 2.2% of GDP in 2011, while increasing revenues by 0.3% of GDP.

The budget gap is expected to narrow to 4.4% of GDP, from 6.8% of GDP estimated for 2010.

ING analysts said that reaching next year's targets would put Romania in a favorable light on international markets.

The bank estimates Romania's budget deficit will be 5% of GDP in 2011, saying that the authorities are likely to face difficulties in continuing the assumed austerity measures because 2012 will be an elections year.ING, fo

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