Romanian Finance Minister Sees 2021 Budget Deficit Below Target

(Bloomberg) -- Romania’s budget deficit will probably end up under this year’s target as higher revenue and contained spending have helped improve the country’s fiscal stance, Finance Minister Adrian Caciu said. 

After posting a gap of 4.7% of economic output at the end of November, Romania has a “good chance” of ending the year with a deficit below the 7.13% target, Caciu said in a phone interview Monday. Revenue increased by almost 18%, while expenses advanced by 6% in the first 11 months of the year, data published by the Finance Ministry Monday showed. 

“We are trying to obtain a budget deficit reduction, and the premises are optimistic,” Caciu said. “As we said in the governing program, one of the priorities of the planned fiscal consolidation is eliminating the fiscal splurge and narrowing the deficit.” 

Romania pledged to cut its budget deficit closer to the European Union’s 3% limit by 2024. The country’s parliament last week approved a budget for 2022 with a deficit target of 5.8% of gross domestic product, but the bill still needs to be cleared by the Constitutional Court after the opposition challenged it and must be signed by President Klaus Iohannis before entering into force. 

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