Page 126 - SE Outlook Regions 2022

the forecast.

Under the Convergence Programme and Excessive Deficit Procedure,
the country's public deficit should be brought under 3% of GDP by
2024.

Romania’s new government, headed by Liberal Prime Minister Nicolae
Ciuca but controlled by the Social Democrats, announced plans to
finish drafting the 2022 budget by the end of 2021.

The deficit target will be maintained in line with the agreements reached
with the European Commission: 5.84% of GDP in cash terms and 6.3%
on an accrual basis (ESA methodology), sources said.

The government has reportedly drafted nine bills to increase tax
collection.

As regards investments, the 7%-of-GDP minimum level previously
announced by the Liberals will be observed as well.

However, only mature projects will be financed from Resilience Facility
money in order to avoid having to return the money because of delays
in the implementation of the projects.

Romania’s public debt to GDP ratio edged up by only 1.1pp in
January-September 2021.

Romania’s public debt rose by €9.8bn including the exchange rate
effects in the first nine months of 2021 to RON556.4bn (€112.5bn) at
the end of September, the Ministry of Finance announced on December
8.

The debt-to-GDP ratio edged up by only 1.1pp from 47.4% at the end of
2020.

The wide deficit planned by the government for Q4, however, will bring
the debt to GDP ratio close to 50% again.

126 SE Outlook 2022 www.intellinews.com