Wednesday, August 28, 2019
Romania’s revised 2019 budget.
The government has portrayed the first budgetary adjustment for this year, in mid-August, as a positive exercise and a mere correction in the payments schedule, with sums that had been allocated to underspending departments redirected to cover urgent needs elsewhere. According to this account, the adjustment will painlessly ensure full payment of wage and pension commitments which increase from September, while keeping the cash deficit below 2.76% of GDP. But this is based on assumptions of continued high economic growth despite the European and global slowdown, and ignores underlying vulnerabilities in the economy.