2.5pc of GDP budget deficit in 2016, former Fin Min says


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The deficit of the consolidated state budget was of 2.6% of GDP in 2016, below the scheduled level of 2.8% of GDP, former Finance Minister Anca Dragu has said on Thursday morning for Bloomberg, quoted by hotnews.ro. In another statement for digi24.ro Dragu said the former executive has handed to the new government a draft budget for 2017 built on a deficit of 2.99% of GDP.

In eleven months the deficit amounted to RON 5.5 billion, i.e. 0.73% of GDP, according to the Finance Ministry.

Minister Dragu said in December 2016 the deficit amounted to 1.9% of GDP.

“We have handed a draft budget to the new government with a budget deficit of 2.99% of GDP, which includes the latest bills regarding the wage increases. We have built the budget according to the current laws,” Dragu said for Digi 24.

The PSD governing programme is a 173 pages document which estimates an economic growth of 5.5% on average during the next four years. The programme reads that the budget deficit will be below the 3% threshold until 2020 and the public debt will be maintained within the current level.

PSD envisages a budget deficit of 2.7% of GDP in 2017, of 2.6% of GDP in 2018, of 2.3% of GDP in 2019 and of 2% of GDP in 2020.

PSD economists anticipate additional revenues to the budget of RON 22 billion after implementing the measures promised during the electoral campaign, which will generate additional budget revenues of RON 99 billion in 2020.

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