Tuesday, February 19, 2008

Romania FinMin wants budget deficit cut to 2 pct/GDP

BUCHAREST, Feb 18 (Reuters) - Romania's Finance and Economy Minister Varujan Vosganian on Monday said he will propose to the government a reduction of this year's budget deficit target to around 2 percent of gross domestic product.

"At the budget revision, I will propose a deficit of a bit above 2 percent in international terms (EU). This means a significant reduction compared to the 2.7 percent deficit target approved by parliament in Romanian standards," Vosganian told Reuters.

He did not say when the budget revision will take place.

Romania targets a budget shortfall of 2.7 percent of GDP this year, but the European Commission has said its calculations put it above its 3 percent Maastricht cap.

The government has recently been chided by international observers and ratings agencies for its loose fiscal stance and not doing enough to control domestic consumption which is feeding inflation and overheating the economy. (Reporting by Marius Zaharia; Editing by Ron Askew)

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