The government plans, however, to increase the deficit to 2.8 percent of gross domestic product by the end of the year due to higher spending on agriculture subsidies to help farmers cope with a severe drought.
The European Union has warned Romania, which joined the bloc in January, to tighten public spending to ensure its deficit remains below the 3 percent deficit guideline for EU member states
The government also plans a deficit of 2.7 percent for 2008, mainly due to a 43 percent hike in pensions and additional spending on education and health care.
Romania is experiencing an economic boom, with the GDP expanding rapidly since 2000. Last year, GDP grew by 7.7 percent and growth is expected to hover at about 6 percent in following years.