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Most likely, the budget deficit will exceed 3pc of GDP, Fiscal Council Chairman says

The state budget faces the risk, more than ever, to conclude the budget deficit above the threshold of 3% of the GDP, as the budget execution reveals increasing expenditures and revenues below expectations, the Chairman of the Fiscal Council, Ionut Dumitru, says.

The Government aims to get more money to the state budget, given that no significant savings can be made in terms of expenditures, and so it has targeted the Pensions Pillar II, but the Executive could justify to the European Commission a higher deficit by referring to the exoneration clause for this year, Dumitru said, according to digi24.ro.

The budget execution in the first 3-4 months of this year point to a clear risk of failing to meet the budget deficit target assumed by the Government, of 3% of GDP, to exceed it, he added.

“This year, more than ever, there is the risk to exceed the 3% of GDP budget deficit,” Ionut Dumitru said, when making a comparative analysis between the budget execution this year, the one last year and the budget approved. Dumitru argued that part of the figures on April are incomplete, given that the Government, represented by Vice-Premier Viorel Stefan, presented only a part of the figures referring to that month.

 

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