Romania records significat progress in taxation field since start of international assistance program

The target for budget implementation in the first quarter of 2011 was hit comfortably and developments indicate that the implementation of the budget remains on track to meet the deficit target set for 2011, 4.4 percent of GDP, says the report released on Monday .

Public sector wage developments continue to comply with the limits set by the 2011 budget and by the medium-term fiscal strategy. According to the spring of 2011 forecast, the commission expects for 2012 a budget deficit reduction to 3.6 percent of GDP, the document adds.

Romania's government debt is going to be 33.7 percent of GDP in 2011 and 34.8 percent of GDP in 2012, with an increase of 22.2 percent between 2007-2012.

The report shows that in the European Union, the debt percentage of gross domestic product (GDP) continues to grow and is expected to reach 83.3 percent of GDP in 2012, an increase of over 20 percent compared with 2007. In the euro area the debt percentage of GDP would reach 88.7 percent in 2012 compared to 66.3 percent in 2007.

At EU level, there is a slow and uncertain recovery from the worst economic crisis since World War II, the authors of the report remark. Following a severe recession in 2009, EU GDP growth was 1.8 percent in 2010 and is expected to remain at the same level in 2011.