BNR’s Isarescu: Budget is ambitious regarding revenues and optimistic regarding expenses

The state budget for 2017 is ambitious regarding the revenues and optimistic regarding the expenses, taking into account how these were executed in the previous years, Governor of the National Bank of Romania (BNR) Mugur Isarescu stated on Tuesday.

“I have analyzed the budget draft. In prices and financial stability point of view, a budget with a deficit lower than 3 percent is helpful. It helps the monetary policy. I haven’t forgotten about the budget construction and I believe that this budget is an ambitious one, especially regarding the revenues. In respect to the expenses, I believe the budget is rather optimistic, taking into account the manner in which the expenses were made in the previous years,” Isarescu stated.

In regards to the protests over the past few days, the Governor of the BNR drew attention over the fact that political instability and tensions are not helping monetary and financial stability.

“Political instability and tensions cannot possibly help, in a good way, the monetary and financial stability, but to quote a publication, as you can see economy minds its own business, but we don’t have to test it!,” Mugur Isarescu warned.

The budget for 2017 will fit the deficit target of below 3 percent of the GDP, Prime Minister Sorin Grindeanu stated on Monday, in the opening of the joint plenary meeting of the Deputies’ Chamber and the Senate.

“The annual budget is definitely an important moment for Romania, the Government and Parliament, as set as a priority are all projects and all short and medium-term public programmes. It is maybe the only moment in which the significance of the words in political statements is replaced with the cold reality of the figures in the state budget draft law and the social insurance budget draft. We can thus contribute to improving the quality of Romanians’ life in 2017, without pretending, however, that we please everyone. The budget draft for 2017 is configures on a macroeconomic framework with a GDP value of 815.195 billion lei and a 5.2 percent economic growth. The cash budget deficit is estimated at 2.96 of the GDP, while the ESA deficit stands at 2.98 percent of the GDP, keeping within the under 3 percent of the GDP budget deficit target, according to the Maastricht Treaty,” Grindeanu told the Parliament plenary meeting, in the debates regarding the budget draft for 2017.

According to him, the budget revenues projected for 2017 are estimated to 254.717 billion lei, 31.3 percent of the GDP respectively.

“The revenues from the domestic economy represent 235.5 billion lei, 28.5 percent of the GDP respectively and the amounts from the EU and other donors are estimated to 22.3 billion lei, out of which 12.4 billion lei on agricultural policy and 9.9 billion lei on cohesion policy and other programmes. The budget expenses are estimated to 278.817 billion lei, which means 34.2 percent of the GDP,” the PM mentioned.


Read alsoState budget draft and social security budget draft for 2017, adopted by Parliament. PM Grindeanu: I send a stability message to investors and confirm them Gov’t determination to support business environment

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