The budget revenues were RON 7.3 billion (4.4%) below the target in January-May, while the expenditures were RON 16.0 billion (8.8%) above plan in the same period, according to Ziarul Financiar quoting data from the Finance Ministry.

By the end of the week, the two ruling partners have to agree on correcting measures. While the Social Democrats (PSD) argue for higher taxation, the Liberals (PNL) prefer cutting the expenditures. Either way, the corrective measures must be of significant magnitude.

The deviation from the plan must have reached EUR 10 billion (RON 49 billion) in H1, 2023 – as much as the entire value of Hidroelectrica on the first trading day on the Bucharest Stock Exchange (BVB), Ziarul Financiar explained.

Overall, the deviation of the public budget from the plan was RON 23.3 billion or 1.5% of the full year’s projected GDP. It was RON 37.3 billion (EUR 7.5 billion), more than twice the RON 14.4 billion (EUR 2.9 billion) plan.

The government targets 4.4% of GDP budget deficit in full-year, but after the 2.3%-of-GDP gap in January-May, it heads towards nearly 7%.

iulian@romania-insider.com

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