Lucian Croitoru (BNR): It’s very difficult to have a budget deficit of 3 pct and an economic growth of 5 pct at the same time

Newsroom 16/01/2017 | 13:13

Lucian Croitoru, the counsellor of the National Bank of Romania governor, says it’s very difficult to have a budget deficit of 3 percent and an economic growth of 5.5 percent at the same time.

„Technically, it’s possible for the budgetary deficit target to be around 3 percent. (…) The problem is that these things cannot be made at the same time. If the deficit is under 3 percent, the economic growth can still be 5.5 percent? Because this growth of 5.5 percent contains for sure the beneficial effects of the stimulus measures, but the deficit reduction to 3 percent means that are introduced measures that have a non-stimulus effect from the economic growth point of view. It’s not difficult to bring the deficit to 3 percent,” said Croitoru.

PM Sorin Grindeanu says that the government expects the Romanian economy to grow by more than 5 percent this year.

Asked about the alleged hole in last year’s budget, which was signalled by the ruling coalition PSD-ALDE, Croitoru said:

„It’s not about a hole. From one year to another the budget doesn’t transfer its resources. Any new fiscal year starts from zero, but with the income that it plans to collect and with the expenses that it plans to make,” said Croitoru.

Georgiana Bendre

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