The government approved on Wednesday the first budget revision for 2016, PM Dacian Ciolos announced as quoted by local media. Ciolos stressed that keeping the budget deficit below 3% of GDP has been a major target of the government to ensure credibility. The government increased revenues and expenditures estimated for this year by some RON 3bn after the good budget performance in H1. It kept, however, the same budget deficit as initially set. Hence, the fiscal gap should stay at 2.80% of GDP in cash terms and 2.95% of GDP in ESA terms. The economic growth projection was slightly revised up to 4.2% in 2016 from 4.1% previously, and the nominal GDP is seen higher at RON757.0bn compared to RON746.6bn initial estimation.
The parliament does not need to approve of the revision as it has empowered the cabinet already in this regard.