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Prime Minister Ludovic Orban said on Wednesday night that according to the Government's estimate, this year the budget deficit will be 6.7 pct of GDP and added that the time will prove whether this estimate was a correct one.
He thus answered a question about the fact that the European Commission's forecasts indicate a budget deficit of up to 9.2 pct% of GDP this year for Romania, higher than 6.7 pct of GDP announced by Finance Minister Florin Citu.
"According to the current budget which has been regulated by the rectification ordinance, these are our estimates, which are also the result of the forecast that was made by the Prognosis Commission. (...) Time will prove who's right. On the one hand, we are concerned with the reducing to a maximum the risk of the spread of the virus, protecting the life and health of Romanians. Obviously, we are concerned about a gradual, well thought-out implementation of every step of relaxation that does not lead to an increase in the number of infections. And we are also setting up the national building programme aimed at restarting the economy that will allow us to get over this economic crisis caused by the epidemic as quickly as possible," Orban said at a press conference at the Military Technical Academy.
Romania's economy will see a significant decrease of 6 pct in 2020 after several years of robust growth, while the government deficit is expected to reach up to 9.2 pct of GDP, according to the spring economic forecast published by the European Commission on Wednesday.
On 15 April, Finance Minister Florin Citu stated that the consolidated general budget deficit is rising to 6.7 pct of GDP at the first budget correction this year, while the measures taken to stimulate the economy represent 3 pct of GDP.
Also on Wednesday, at an online debate organized by the Organization of Liberal Business persons, entitled "IMM Invest and the Strategic Projects of the Romanian Government in the energy sector", the Secretary-General of the Government, Antonel Tanase, said that the Executive hopes that by the end of the year Romania will not exceed a deficit of 10 pct of GDP and, in parallel, is preparing a comprehensive programme to relaunch the economy through a series of measures aimed at both public investment, but also supporting private companies.
"The government is preparing an economic recovery package, starting from the industries we know, automotive, IT, the construction sector, the agricultural field (...) We are considering, as I said, in the construction sector the introduction of fiscal facilities for the relaunch of the sector, to be announced by the Government in the coming period, an investment fund which is also prepared by the Government, based on the Polish model, a model that has performed very well. (...) Also, in the field of infrastructure we allocate great attention to projects, especially Sibiu-Pitesti (motorway), the Bucharest City Belt, development of Constanta Port and (Henri Coanda) Bucharest Otopeni Airport," Tanase added.
