The Romanian Ministry of Finance announced a consolidated budget deficit of RON 18.07 billion lei (approximately EUR 4.24 billion) for the first half of the year, about 25 percent higher on the same period last year.
In spite of the increase, it remains right below the RON 18.2 billion target agreed upon with the International Monetary Fund (IMF). Under the terms of Romania’s EUR13 billion agreement with the IMF, the deficit target for 2010 was set at RON 34.65 billion, 6.8 percent of its GDP respectively.
According to the ministry’s preliminary data, public revenues have decreased by 0.1 percent (RON 77.2 billion) against H1 2009 while expenses went up by 4 percent (RON 95.3 billion).
Joint teams from the IMF and EU are currently in Bucharest for the fifth review of Romania’s progress under the program.