Romania’s budget deficit is projected to reach 8.6% of GDP in 2024, according to a GEO draft released by the Ministry of Finance and approved by the Government. This marks an increase from the previously set target of 6.9% of GDP. The latest document suggests a deficit of 8% of GDP, aligning with market expectations.
The GEO project proposes raising the budget deficit ceiling to 8.58% of GDP and the public debt ceiling to 54.5% of GDP. Additionally, it includes an increase in personnel [mepr-show rules=”1611″ unauth=”both”]expenses. The general consolidated budget deficit for 2024 could amount to RON 151.79 billion.
The primary balance of the general consolidated budget is reported to be minus RON 114,572.2 million, indicating that Romania will pay over RON 37 billion in interest this year.
The GEO draft highlights the disappearance of RON 10.5 billion from digitalization revenues, which were supposed to come from the National Account for the Digitalization Revenues Record. This missing amount contributes to the deficit increase.
Initially estimated at 5% of GDP, the deficit forecast for 2024 was revised to 6.9% and later to nearly 8% of GDP. The funding requirement includes loans for public debt rollovers and financing the budget deficit.
[/mepr-show]