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_ Romania's 2023 budget built on 4.4pct of GDP gov't deficit, 8.2pct of GDP personnel costs
Romania's 2023 budget built on 4.4pct of GDP gov't deficit, 8.2pct of GDP personnel costs
Romania's draft 2023 national budget is built on a projected government deficit of 4.40% of GDP, both cash and ESA, and projected personnel costs of 8.2% of GDP, according to the draft law setting caps on indicators in the tax and budget framework for the year 2023, published by the Ministry of Finance, told Agerpres.
"The government, through the Ministry of Finance, has developed a taxation and budgeting strategy for 2023-2025 that establishes the principles, objectives and tax and budget priorities of the government for 2023-2025. The strategy is the substantiating document on which the indicators included in the draft law for the approval of caps on indicators in the tax and budget framework for the year 2023 are projected. For the year 2023, the budget balance is estimated at -4.40% of GDP, and personnel costs at 8.2% of GDP, while for 2024, the budget balance will be -2.95% of GDP, and personnel costs of 7.9% of GDP," according to the draft's substantiation note.
For the year 2023, the cap on government debt according to the EU methodology is 49.8% of the Gross Domestic Product, taking into account the potential pre-financing that can be drawn on favourable terms from the financial markets, as well as the possible developments below the expectations of both macroeconomic indicators, as well as financial markets.
The cap is mandatory for the year 2023.
In 2023, reimbursable funding allowed to the administrative and territorial units/subdivisions is RON 1.6 billion lei, and the cap on withdrawals from reimbursable funding contracted or to be contracted by the administrative and territorial units/subdivisions is set at RON billion lei each.
The cap on the issuance of guarantees by the government through the Ministry of Finance, and by the administrative and territorial units/subdivisions in 2023 is set at RON 40 billion.
The basis for building the national budget in the years 2023 and 2024-2025, as well as the downward trend in the government deficit in the medium term, indicate a clear tendency of the gradual elimination of procyclical fiscal policy, and in 2023 fiscal consolidation continues, so that the Romanian government deficit may return to below 3% of GDP in 2024, as provided for in the Maastricht Treaty.
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