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Suciu (BNR): the budget is already up in the political air

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The budget of Romania is practically up in the air, and the discussion about pensions and salaries has no economic relevance as, politically Romania can afford anything, but economically it affords only what it can pay, stated on Wednesday the spokesperson of the BNR Dan Suciu.

‘The budget is already up in the air, practically. I don’t know what we are talking about. What is important is that budgetary deficit, which the Romanian state had, to be paid , to be covered (…)', said Suciu with Digi 24, asked if Romania could afford to double the children’s state aid and an increase of the pensions by 40%.

According to him, these measures can be achieved only by loans but those loans are with some interests, which depend on a certain economic reality. Suciu explained that, at present, the expenses must be calibered correctly with a view to sizing correctly the crisis elements.

‘This economic reality depends on some deficits which we already have. Romania did not start with zero budgetary deficit (…) It started with serious budgetary and commercial deficit. As a consequence, it does not leave from zero and has much to recover. Plus the elements of crisis we cannot size correctly for the moment. We know they will be big, but we don’t know how to size them correctly. In exchange, what we know, we have to caliber some expenses. It is the only solution, to size expenses correctly’ Dan Suciu said.

He spoke about the uncertainties in the Romanian economy, counting the sanitary crisis, the unknown impact on the economy, the unknown impact of governmental measures for the support of the economy and what happens with the price of raw materials at global level. In his intervention the BNR spokesperson said that there are certainties, the budgetary deficit, which will grow significantly, and that of current account, which will ‘ consolidate at about 4%’.

‘The certaintiy is the budgetary deficit that will grow significantly, the figures connected to economic growth will drop significantly, and the deficit of current account, the other deficit which worries us, will consolidate somewhere about over 4% as, even the balance of commercial goods seems a bit modified, as there are no significant imports, at least this is what it seems. Romania is an exporter of services, transport, for example, these are under question’, the quoted source says.

Under these conditions, Suciu considers as revolting the fact that there are analysts and politicians who state that any expenses are possible and Romania would afford smaller interests.



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