Gov't approves third budget revision this year

The government approved today this year's third budget revision, which increases the budget deficit to 9.1 percent of GDP from the previously estimated 8.6 percent.

The fresh revision also envisages an economic contraction of 4.2 percent.

"The third budget revision for 2020 was approved at today's government meeting. Through this revision, this year's budget deficit was increased to 9.1 pct of GDP, specifically 96 billion lei, based on an economic contraction of 4.2 pct and a nominal GDP of 1,050 billion lei. The consolidated general budget deficit increases by 5 billion lei, of which 4.2 billion lei arise from the decrease of the general consolidated budget revenues and 0.8 billion lei from higher expenditures of the general consolidated budget," Finance Minister Florin Citu told a press briefing at the Victoria Palace after the meeting of the Executive.

The revenues of the general consolidated budget are estimated at 337.8 billion lei, respectively 32.2 pct of GDP, of which 298.3 billion lei (28.4 pct of GDP) are revenues from the economy and 39.5 billion lei (3.8 pct of GDP) are non-reimbursable external funds.

The expenditures are estimated at 433.8 billion lei, or 41.3 pct of GDP.