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Draft 2012 Budget is built on 1.9% of GDP, 2.1% economic growth

The draft 2012 Budget is built on a deficit of 1.9 percent of the Gross Domestic Product (GDP) and a 2.1-percent economic growth, which would bring the deficit in ESA terms to 3 percent of the GDP, Prime Minister Emil Boc said Friday after meeting the management of the National SMEs Loan Guarantee Fund.

'The draft 2012 Budget is built on a deficit of 1.9 percent of the Gross Domestic Product (GDP) and a 2.1-percent economic growth. Romania could stand a chance of reaching a deficit of 3-percent in ESA terms at the end of 2012, if the situation elsewhere in Europe improves. We are starting with this budget because it is a responsible, rational and prudent budget. It is prudent so that we may not have to cut back on other social obligations of the Government if things fail to get better elsewhere in Europe,' said Boc.

He added that public pensions will not increase before the economy allows. 'We will not increase public wages or pensions before we see that the economic conditions allow us to do so. If they allow us to do so, we will increase the wages and pensions in the second part of 2012, when we know which scenario we follow: the optimistic one or the pessimistic one,' said Boc.

He added that investment will underpin Romania's economy in 2012 and the Government will avoid any excessive rise in public debt. 'Public debt will be 33.9 percent of the Gross Domestic Product (GDP) in 2012, which is far below the 60-percent mark allowed under the Maastricht Treaty. Our aim is to keep the public debt at a low level, and a deficit of below 3 percent paves the way toward achieving such goal. The operational words in the 2012 Budget are investment and jobs,' Boc said.

He also stated that Romania is keeping its objective of switching over to the European single currency in 2015.

Sursa: http://www.actmedia.eu

Tags: percent budget deficit growth economic built draft