Fiscal Council: Budget deficit to rise to 3.5 percent of GDP in 2019

The Fiscal Council published its opinion on the draft budget for 2019 and it says that the fiscal deficit will exceed the 3 percent target even if the greed tax on bank assets remains at its current levels.

According to the Fiscal Council, the budget deficit will rise to 3.5 percent of GDP, almost one percentage point over the 2.76 percent deficit estimated in the draft budget, Business Review reads.

The Fiscal Council finds that the deficit will likely be underestimated by RON 3.5 billion, coming mostly from expenditures with social assistance (RON 0.9 billion) and from the budget for social insurance (state pensions), underestimated by RON 1.2 billion.

The Fiscal Council also notes that, for the first time since its establishment, its budget deficit target is increased after submission of the draft budget to Parliament, in direct contradiction with the provisions of art. 15 of the Public Finance Act.