25 Martie 2009
4% GDP compression walls budget revenue forecasts
Romania's government will revise the budget calculations based on the new 4% compression of GDP assumption which would result in a decrease in budget revenues by 20 bln lei versus the level stipulated in the current budget plan, sources close to the issue told NewsIn.
The European Commission adopted International Monetary Fund’s projection that pinpoints Romania's economic growth at -4 percent.
Officials mentioned that the government had reached an agreement with the fund concerning the budget deficit, which was settled at 4.6 percent of the Gross Domestic Product (GDP).
Consequently, budget revenues could revise downward the budget revenues from current 193 billion euros or 33.5 percent of the GDP to 173 billion euros. The 2009 budget plan was built on a 2.5 percent economic growth.
“If these gloomy predictions turn real, we will have to cut spending with goods and services, but also investments, while increasing some expenses like social and unemployment benefits,” explained people from the Cabinet.
The Labor Ministry Marian Sarbu declared yesterday that the number of unemployed in Romania would hike by 300,000 people the most this year over the past year which would require a 500 million lei surplus to the budget for indemnities and trainings.
Officials mentioned that the government had reached an agreement with the fund concerning the budget deficit, which was settled at 4.6 percent of the Gross Domestic Product (GDP).
Consequently, budget revenues could revise downward the budget revenues from current 193 billion euros or 33.5 percent of the GDP to 173 billion euros. The 2009 budget plan was built on a 2.5 percent economic growth.
“If these gloomy predictions turn real, we will have to cut spending with goods and services, but also investments, while increasing some expenses like social and unemployment benefits,” explained people from the Cabinet.
The Labor Ministry Marian Sarbu declared yesterday that the number of unemployed in Romania would hike by 300,000 people the most this year over the past year which would require a 500 million lei surplus to the budget for indemnities and trainings.