The main elements of the first High Mobility Artillery Rocket System (HIMARS), a light multiple rocket launcher manufactured by Lockheed Mar ...
by Romanian Reporter - Friday, February 12, 2021 11:19 AM
According to the budget law published Thursday evening, the state revenues will be about RON365 billion (32.67% of GDP) in 2021, while the expenses will reach RON445 billion (39.84% of GDP). The budgetary deficit will therefore be around RON80 billion, down by RON20 billion compared to last year.
The estimated deficit represents 7.16% of GDP for 2021, compared to 9.79% for the last year. The percentages are calculated on a cash deficit methodology, which is preferred by the Romanian authorities, as well as the International Monetary Fund.
This method counts the actual payments performed within a timeframe, as opposed to the ESA (European System of Accounts) methodology, used by the European Commission, which includes all cost commitments, even if the actual payments take place in a different fiscal period. When using the ESA methodology, the 2021 budget deficit increases up to 8.23%.
The budget estimations are built on a 4.3% economic growth assumption for 2021, with a nominal GDP of RON1.116 billion and an average inflation rate of 2.4%. The estimated growth rate for 2022-2024 is 4.9%, higher than the estimated average for EU countries (4.2% for Eurozone and 4.1% for all EU countries, as estimated for 2021).
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