RSS
Daianu (FC): We could have a GDP dynamic arund 3%; we risk budget deficit of 75%
Romania may register this year a 3% economic growth, but we risk reching a budget deficit of 7% if we are not attentive, said Daniel Daianu, the president of the Fiscal Council on Thursday, when he participated in a conference referring to Romania's macroeconomic prospects.
“I think this year we have chances for a GDP dynamic around 3%. Since we have pension increases, the indexation and the impact of pension reforms, we have salary increases in education for teachers, and other things. All these feed economic activity, demand and in a way eplain why we, from the Fiscal Council consider it is not possible to be with a deficit under 6% this year. We could use, as we did last year, a sui generis adjustment, that is to cut capital expenses. Last year they were reduced by 0.9% of GDP drastically in order to curb the deficit. The cash deficit. We will have a very difficult budget execution and we risk leaning toward a 7% budget deficit if we are not attentive, Daianu said at the conference “Romania's macroeconomic and fiscal prospects for 2024,” organized by News.ro.
He mentioned that the risk was also present last year.
He also declared the this year the European Commission would probably open imbalance procedures through the view of public debt and budget deficit of more than 15 EU member countries.