Budget deficit doubles to 3% of GDP in one month due to non-collected revenues

The estimated budget deficit approached 3% eleven months into the year, reaching 2.9% of the GDP, amid a dramatic decline in revenues in October and November, which were around 1.3 billion euros lower than the level provided for. "We have discussed a very strict plan for December, so as to keep the deficit below 3%, or keep it from exceeding the mark by more than 0.1-0.2% of the GDP. Companies are using tax credit more and more often more, because they have cash problems," says Finance Minister Varujan Vosganian. He warned in early November that revenue collection difficulties had arisen due to the companies' liquidity shortages, after banks cut their credit lines, with budget losses derived by non-payment of taxes then put at around 1.5 billion RON. Prime minister Tariceanu asked on Thursday that the Ministry of Finance should adopt "severe discipline" measures regarding public spending, and demanded cuts in employee bonuses and perks.