Romania posted a deficit of 4.6pc in 2019, higher than estimated

Romania has reported a budget deficit of 4.6% of GDP in 2019, according to the preliminary budget execution released by the Ministry of Finance, which means the deficit is 0.2 pc higher than the one estimated through the rectification last year. It is the highest deficit in the past 9 years.

Finance minister Florin Citu explained that the deficit had increased by 0.2pc partly due to the payment of RON 0.91 billion the state had to direct to Micula brothers and because other RON 1.3 billion had not been cashed in as dividends from the state companies.

“There these two things we could not estimate and avoid”, Citu said.

Moreover, he argued that, compared to the initial budget law, expenses on salaries and social assistance had increased, while investments decreased.

Compared to the initial state budget law, incomes have adjusted by RON 21.5 billion, with decreases of RON 6.1 bln to the fiscal revenues, RON 5.8 bln to the social securities, RON 1.2 bln to non-fiscal rvenues and RON 8.4 bln to EU funds.

Expenses have increased by RON 5.1 bln in such sectors as social assistance, by RON 4.2 bln – goods and services, by RON 1.2 bln – interests, RON 6.3 bln – investments and RON 3.3 bln for others.