The budget revision the Romanian Finance Ministry slated for March is not a reflection of a flaw in the tax system and the government is determined to narrow the budget gap without affecting investments or the rights of the budgetary personnel, minister Varujan Vosganian said.
- Publicitate -
The government maintained the budget deficit at 2.8 percent of the gross domestic product and it is likely to reduce budget spendings by 2 billion euros or more, Vosganian said today during a press conference.
The government plans to give a signal that Romania has a firm fiscal policy and there is no negative economic span. Vosganian will present to the Parliament a program regarding the fight against poverty.
The Senate adopted on February 26 a simple motion regarding the standard of living with 74 votes in favor and 33 votes against. The motion was initiated by the Social Democrat Party (PSD), Romania’s largest opposition group.
The revised budget deficit for 2007 stood at 2.6 percent of the preliminary GDP, the minister said last night at a meeting with bankers. The central administration’s deficit was of 1.5-1.6 percent of the GDP, close to estimates revised in November last year, he added.
Romania’s target this year is of 2.7 percent of the GDP. However, the European Commission showed the country’s public gap could easily exceed the 3 percent threshold stipulated in the Maastricht Treaty.
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