Monday, August 3, 2009

Romania budget deficit at 2.7 pct/GDP in H1

BUCHAREST, Aug 2 (Reuters) - Romania reported a consolidated budget deficit of 2.7 percent of gross domestic product in January-June, in line with IMF-agreed targets, with revenues falling by 5.1 percent on the year, data showed on Sunday.

Like most of its neighbours, Romania slipped into recession this year as the world crisis slashed lending and consumption and forced it to secure 20 billion euros ($28.23 billion) in IMF-led aid.
The finance ministry said in a statement consolidated revenues reached 77.3 billion lei ($25.92 billion), with income tax collection rising by 8.2 percent while profit tax revenue fell 8 percent year-on-year.

It said spending grew 5.6 percent on the year to 91.7 billion lei.

Romania will ask the International Monetary Fund to allow it a higher budget deficit of up to 7 percent of GDP this year, hoping to follow Hungary in securing easier terms for an aid package.
The Washington-based lender has begun a first review of Romania's progress in meeting aid conditions, which include a fiscal deficit target of 4.6 percent of GDP in 2009.

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