Wednesday, January 14, 2009

Romania finmin sees 2-2.5 pct/GDP budget gap in 2009

BUCHAREST, Jan 14 (Reuters) - Romania revised its budget deficit forecast for this year to 2.0-2.5 percent of gross domestic product from a previous 1.7-2.0 percent, Finance Minister Gheorghe Pogea was quoted as saying on Wednesday. 'The budget deficit will be between 2 and 2.5 percent of GDP ... and any spending exceeding the 2 percent of GDP level will be going exclusively to public investment,' Pogea was quoted by daily Gandul as saying.

He also revised his economic growth forecast downward from a previous 3.5 percent. 'The economy will land from growth of 7.9 percent, the estimation for 2008, to under 3 percent, probably 2.5 percent,' Pogea said. Prime Minister Emil Boc said last week the 2008 budget deficit would be around 5 percent of GDP and the previous forecast for this year's budget gap was built on wrong budget data for last year and needed to be changed.

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