In four months, the Romanian government has to cut its spending by 1 billion Euros

The Romanian Prime-minister Emil Boc announced a 2% increment of the pension point and free of tax reinvested profit, starting October 1^st. It has also announced it will drop the minimum tax, at least partially, starting January 1^st.

By the end of the year, the Government has to reduce budget spending by 0.8% of the Gross Domestic Product (GDP), so that the national deficit does not exceed 7.3% of the GDP. “If we think there are only four months left by the end of the year, you can see it is an ambitious project ”, said the International Monetary Fund delegation chief Jeffrey Franks. According to him, the Romanian Finance Ministry will have to find financing sources, internally and externally, to cover the deficit rise, from 4.6% estimated in March, to 7.3% of the GDP which was convened lately.

An important part of this excessive deficit will covered by the IMF and incoming funds from the World Bank and European Commission. The rest, an estimated 1 billion Euros, will have to be raised by the Romanian government, using any procedures it sees fit, according to the delegation chief.