Romania Jan-Jul Budget Deficit At 3.3% Of GDP

In January-July, total revenue to the general consolidated budget stood at RON92.2 billion, down 6.9% from the corresponding period in the previous year.

Overall expenditure rose 7.4% on the year to RON109.8 billion in January-July.

Romania secured end-March a EUR19.95 billion financial aid from the International Monetary Fund, the European Union and other international institutions to cope with the deepening recession.

The agreement between Romania and the IMF fixes quarterly performance criteria on this year’s budget deficit, which was initially set at RON24.36 billion, or 4.6% of the GDP.

However, the IMF agreed to allow Romania a higher budget cap at 7.3% of the GDP this year, on a sharper-than-expected economic decline.

The Romanian government has revised down its forecast on the GDP growth to RON497.3 billion from RON531.2 billion initially estimated, reflecting an economic contraction predicted at 8%-8.5% this year.

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