The budget revenues lag by RON 21 billion (EUR 5 billion), the equivalent of 1.3% of the expected full-year GDP, behind the plan, Liberal (PNL) finance minister Marcel Bolos admitted. He blamed the "unrealistic" budget planning authored by his predecessor, Social Democrat (PSD) minister Adrian Caciu, G4media.ro reported.

The 4.4%-of-GDP deficit target was "unrealistic," Bolos stated. For instance, the inflation was overestimated, he said – implying that his predecessors hoped for higher inflation to boost nominal revenues (and dilute real expenditures). 

Romania's Fiscal Council estimated last December that the budget for 2023 will result in a cash deficit of around 5.7% of GDP, according to its opinion published on December 8.

The government set a 5.5%-of-GDP informal target during the summer and now hopes to keep the public gap below 6%-of-GDP.

iulian@romania-insider.com

(Photo source: Gov.ro)