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Budget deficit inches 5.18 pct of GDP after first eight months of 2020

ministerul finantelor

The budget deficit inched 5.18 pct of GDP after the first eight months of this year, i.e. 54.77 billion lei, from 4.7 pct of GDP, or 49.68 billion lei in the same period last year.

"The implementation of the consolidated general budget in the first eight months of 2020 registered a deficit of 54.77 billion lei (5.18 pct of GDP), of which more than half is the result of measures to combat the crisis caused by the COVID-19 epidemic. Amounts of 31.17 billion lei (2.95 pct of GDP) were left in the economic environment through fiscal facilities, investments and exceptional expenses adopted to combat the effects of the COVID-19 epidemic," states the Ministry of Public Finance, which published on Monday data on the budget implementation at eight months.

In the first eight months of last year, the budget implementation indicated a deficit of 21.9 billion lei, or 2.1 pct of GDP.

According to official estimates, the budget deficit will rise to 8.6 pct of GDP this year, with five percentage points directly linked to the crisis period Romania is going through.

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