Are you sure?

Romania to revise budget to show narrower deficit

Romania's government will revise the budget for a fourth time this year to cut deficit figures because a surplus was recorded for the first nine months.

The government next month will revise the budget to allow for a deficit that's narrower than the latest 2.5% target, Prime Minister Calin Tariceanu said, without giving a new objective for the gap. „We're in a situation that permits us to make this change,” Tariceanu said today in a televised speech from a business seminar in Bucharest. A surplus of 1.7% of GDP was posted for the first nine months this year, the Finance Ministry said on its Web site. Romania, which will join the European Union on January 1, has so far this year spent less than planned on roads, education, agriculture and the environment, while collecting more revenue from taxes. Romania's budget deficit will widen next year to as much as 2.8% of GDP, according to the government's budget draft. The country plans to spend more to come closer to EU standards, Tariceanu said October 13. The International Monetary Fund said October 10 that Romania should seek a balanced budget for next year to avoid an increase in the annual inflation rate to as much as 7%. (Bloomberg)