Total public budget revenues last year amounted to 136.48 billion RON (41 billion euros), while the budgetary deficit reached 2.4% of GDP, in line with the government's target.
The public budget ended last year with a consolidated deficit of 2.4% in GDP (10bn RON, namely 3 billion euros), with the Government managing this way to hit the deficit target it set through the rectified budget. In line with the European methodology, the budgetary deficit stood at 2.6%-2.7%, stated Varujan Vosganian, the economy and finance minister.
The consolidated budget deficit resulted from total revenues of 136.8bn RON (41 billion euros) and expenditures of 146.8 billion RON (44bn euros). In line with the European methodology, revenues accounted for 35% in GDP and expenses for 37.6% in GDP.
"At the beginning of December, we estimated a deficit of just 1.4% would be reached, but local administrations had higher-than-expected expenses towards the end of the year, particularly in December," explained the economy and finance minister.
How can municipalities' large expenses be accounted for? "Administrations haven't got used to the high level of sums available from the budget. That is why, starting 2005, expenditures have been largely operated in December," said Vosganian. He acknowledged there was a certain unpredictability about how public funds are spent.
In his opinion, the lesson for 2007 would be that "it's been proved that the economy has resources for budgetary allocations to be raised and there is sufficient political will for this, but predictability in budgetary execution is needed".
According to Vosganian's calculations, besides the expenditures included in the budget for 2007 the Parliament approved in late 2006, some revenue losses and/or unexpected expenditures of around 3.2 billion euros were also registered last year.
Overall, the budget received almost 5% less than expected. For this year, the budget voted by the Parliament stipulates revenues worth 172.8 billion RON (49.4bn euros, against an exchange rate of 3.5 RON/euro), expenditures of 184.8bn RON (52.8 billion euros) and a consolidated deficit of 2.4% in GDP.
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