The Romanian government borrowed 32 billion Euros to no avail

The 1.5 million Euros installment which the Romanian authorities is receiving from the IMF could be insufficient even to cover the national deficit recorded by the social insurance budget. If the trend continues like in the last eight months of this year, the retirement budget could see a 5 billion Lei deficit in December, which is equivalent to a 14% imbalance between incomes the states spending.

Although, at the beginning of 2009 the Ministry of Labor declared it will only need a 70 million Lei transfer from the State, at the end of June the retirement budget deficit reached 2.5 billion Lei. The severe imbalance, after only six months, determined the government to divert over 5.5 billion Lei from the State Budget, at the end of August.

According to the information published but he Ministry of Finance, the pensions budget recorded a 3.72 billion Lei deficit, which led analysts to believe that if the current pace will be maintained, Romania’s social insurance deficit will surpass 5 billion Lei at the end of this year.

Translated by: Tradu.org