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FinMin Citu: So far, the budget execution is concerning, 10-month execution will show increase in deficit


The budget execution so far is worrying, we will continue to have an increase on the deficit at 10-month and the situation confirms our greatest fears, Public Finance Minister Florin Citu told a news conference on Wednesday.

"The budget execution so far is worrying. We will still have an increase on the deficit at 10-month. The situation confirms our greatest fears regarding the budget situation. I will present all the data next week in a press conference. Moreover, I want to announce you that I signed the postponement of the contest for the ANAF [the National Agency for Fiscal Administration], until March next year," Citu stated.

The general consolidated budget ended the first nine months of this year with a deficit increasing to 2.6 percent of the Gross Domestic Product (GDP), 26.97 billion lei, respectively, a figure which represents an increase of 60 percent against the same period of last year, the data recently published by the Public Finance Ministry showed.

Between January-September 218, the consolidated budget recorded a 16.8 billion lei deficit, 1.77 percent of the GDP, respectively.

Romania's state of finance is very bad, as its previous government failed the revenue collection plans, freshly sworn in Prime Minister Ludovic Orban told a news conference at the Finance Ministry on Wednesday.

"I am today at the Ministry of Public Finance to officially install the new Minister of Finance, Florin Citu. I had some talks before this news conference on the financial state. As I have warned for at least a year, it is clear that the state of finance is very bad; in fact, that is visible from the official figures published: the 9-month implementation ended with a government deficit of 2.6pct, as against 1.6 in the same period of 2018. It is also clear that the collection plan was not met, and there is an 11 billion deficit. Also, the collection of contributions also over one billion in the red. There is a deficit in both the national budget and that of state social security and healthcare," said Orban.

On the other hand, he added that Citu will have to gather a team next week to present a detailed, up-to-date picture of the current situation and the measures he will take to try to confine the budget deficit, to stop some public expenses and to fight against big-time tax evasion.

Prime Minister Orban on Wednesday attended a ceremony where Citu took over the portfolio of Finance Minister.