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FinMin Citu: ‘ the hole’ in the budget after 9 months is approximately 21 billion lei
The total income estimated by the government PSD for the first nine months of 2019 are 249 billion lei, and the execution shows 228 billion lei, which means ‘ a hole’ of approximately 21 billion lei, wrote on Tuesday night on his Facebook page the minister of finances Florin Citu.
The PSD government ‘estimated’ total income 249 billion lei for the first nine months of 2019. The execution shows 228 billion lei. The hole after 9 months, already published, approximately 21 billion lei’ Citu said. He said that on Thursday he will have a press conference at the MFP headquarters.
On 6 November, the minister of finances stated that the budgetary execution is worrying, and at ten months we will have growth of deficit as well. ‘The budgetary execution until now is worrying. At ten months the deficit grows (…). The situation confirms the biggest worries which we expressed, which refer to the budgetary situation’ Citu said.
The budgetary execution according to the operational data of MFP closed for the first nine months of 2019 with a deficit of 26.97 billion lei, 2.6% of the GDP.
The income of the general consolidated budget was 228.7 billion lei, representing 22.2%of GDP, as compared to 21.7% of GDP during the same period of 2018. As percentage, the income was by 11.6% higher, a growth of 23.7 billion lei, in nominal terms, against the same period of the previous year. The expenses of the general consolidated budget were 255.6 billion lei with 15.3% higher than the similar period of 2018.
Premier Ludovic Orban stated on Tuesday that according to him there are no chances that Romania keeps the target of budgetary deficit of 3% of the GDP for this year.
‘The deficit surpassed 2.6% as compared to the previous year, when the deficit was 1.6%. Not only is this deficit but very many expenses which had to be made according to the law were not made’ Orban stated, in a show on Romania TV.
He exemplified with delays in VAT reimbursement towards companies, worth 5.2 billion lei, works approved and payments which had to be made for over five billion lei in the National Programme of Local Development (PNDL) and medical leaves which were not paid, worth two-three billion lei.
‘ We are trying to reset the expenses. Evidently, there will be a deficit. The things are clear. In my opinion, there is no chance to keep within the deficit target. (…) think that it was not us who executed the budget. In 10 months and something, until 4 November, until the government was invested, they executed the budget, they made the expenses (…). Since the PSD existed, they have transferred expenses from one year to another’ Ludovic Orban said.
The premier added the fact that a supplementary deficit will appear as they did not collect the planned sums in the state budget, the percentage for collection being 26% of GDP, as compared to almost 30% in other years.
According to Ludovic Orban, the social-democrat government made expenses for which there were no resources, and the expenses for personnel grew over the last year by 26%.