National leader of the Save Romania Union (USR) Catalin Drula says that the government deficit reached a record level of RON 57 billion (3.34% of GDP) in the first four months of 2024, as government outlays increased by almost 30% but revenues only by 15%.
„The official confirmation has come: deficit at record level! What the financial disaster looks like in numbers: government spending increased by almost 30%, while revenues increased by only 15%. Expenditures on public employees’ salaries surged 21% percent, while those on goods and services by 28%. Initial budgeting envisaged an increase of only 10% in total spending, but reality shows a double value. In the first four months of 2024, the government deficit reached RON 57 billion (3.34 percent of GDP), and at the end of the year it can go up to 8% of GDP,” the USR leader wrote in a social media post.
According to him, the budget crisis requires „urgent measures” to cut spending, but borrowing will continue amidst ongoing electioneering.
„Instead of investing in hospitals and schools, the money will go to pay off the debts incurred by Marcel Ciolacu and Nicolae Ciuca. Inflation will continue to rise, Romanians’ purchasing power will decrease. We’re not going to let them win this year, because that would mean a tax surge. They won’t raise taxes because they won’t win.’
According to official data published on Monday by the Ministry of Finance, the government deficit rose to 3.24% of the Gross Domestic Product (GDP) after the first four months of 2024, which means RON 57.29 billion, as against RON 35.88 billion or 2.06% of GDP after the first three months.
The April 2024 deficit is said to have also been influenced by RON 9.33 billion (0.53% of GDP) in advance payment of public pensions and other rights provided for under special laws related to May from the public social security budget (RON 8.31 billion) and the national budget (RON 1.02 billion).
Total revenues amounted to RON 182.7 billion in the first four months of 2024, up 15.3% year-on-year.
AGERPRES
