The budget planning for 2024 will be passed by the end of the year, prime mMinister Marcel Ciolacu assured, Bursa reported.

Between this year's failed fiscal consolidation and the 2025 budget just put under enormous pressure by the new Pension Law, the budget of the super-electoral year 2024 seems equally difficult to draft and particularly execute.

From around 5.5% of GDP this year and the 3% of GDP target, the Government must bring the gap down by at least one percentage point (pp) in 2024 and 1.5 pp if it envisages exiting the excessive deficit procedure in 2026 while enforcing the Pension Law in the form passed by the lawmakers.

The Government has not mentioned any deficit target envisaged for 2024. However, the rather optimistic growth scenario (+3.5% GDP advance) combined with the slower inflation is likely to generate significant risks on the budget execution in 2024.

With the elections in mind, PM Ciolacu promised no new taxes but rather lower labor taxation, with no clear calendar, though.

The minimum wage for 2024 was still not decided, but the executive could hit two targets with one bullet in this regard – secure voters' support and boost its revenues.

(Photo: Gov.ro)

iulian@romania-insider.com