The Council said raising the deficit target and the apparent undervaluation of social assistance spending and contribution to the EU budget entail a deficit close to the EU limit of 3%, even while disregarding the overestimation in terms of budget revenues. Considering the inflated revenue projection, the deficit is likely to be pushed to 3.5% of GDP, the Fiscal Council said.
In a previous analysis, on February 5, the Fiscal Council said budget revenues were overvalued by RON4.5 billion if the tax on bank assets remained unchanged.
Romania’s president last week sent the state budget bill back to Parliament for reexamination.