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Romanian Government stresses the deficit will stay below 7%

de R.M. transl/adapt. C.B.     HotNews.ro
Vineri, 7 mai 2010, 18:20 English | Politics

Romania is going to keep the budget deficit below 7%, Government's spokeswoman Ioana Muntean declared on Friday, May 7. According to her, Finance minister Sebastian Vladescu and PM Emil Boc "are currently working together to finalise the intention letter for the stand-by agreement with the International Monetary Fund", based on the measures announced by President Basescu.

"This letter contains, as central issues, the already announced measures, which keep the budget deficit below 7% of the GDP, practically putting a halt to the budget deficit's increase to 9%, like it would happen in the absence of this measure", she informed in a press communiqué.

Ioana Muntean added that the Government "is elaborating a plan to prioritise for public investments to support the economic activity and to pay off the remaining debts to firms".

The Prime-Minister will make an official statement after the intention letter will be finalised, "based on the announced measures".

President Traian Basescu declared yesterday that the VAT and the flat tax remain unchanged, but mentioned that salaries, unemployment benefit and pensions will drop by 15%-25%.


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