BUCHAREST – Big budget gap

The budget deficit widened by a whopping 10 billion lei (around €2 billion), which is about 1% of GDP, in just a month. The general government deficit reached 1.67% of GDP at the end of March, up from 0.73% of GDP a month before.

The country’s finance ministry announced it is Ministry said the widening of the deficit was due to both higher costs and lowered revenue. In March alone, budget revenue fell more than 25% compared with the same month of 2019.

The government proposed various fiscal facilities in the context of the COVID-19 pandemic, including the possibility for companies affected by lockdown and the social distancing measures to delay the payment of taxes due in March.

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