Pogea: Budget gap widens to 4.4% of GDP

The eight-month budget gap is estimated at approximately 4.4% of Gross Domestic Product, according to Romanian minister of finance, Gheorghe Pogea.

The minister said that the final data on the economic performance for the first eight months would be released at the end of this month.

In the first seven months, the country ran a consolidated budget gap of 17.6 billion lei (€4.2 bln) or 3.5% of Gross Domestic Product revised, after expenses soared 7.4% to 109.8 billion lei while revenues fell 6.9% to 92.2 bln lei, according to data made public by the Ministry of Finance.

Romanian authorities and International Monetary Fund agreed on a budget deficit of 7.3% of GDP for year-end, compared to initial 4.6% target, due to worsening economic conditions.

The Government projected an economic contraction of 8.5%for this year and a GDP of 497.3 bln lei versus initial forecasts of 531.3 bln lei and 4% gap. Last year, Romania’s GDP stood at 504 bln lei (€136.8 bln).

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