IMF sends warning to Romanian government

Written by on October 24, 2015 in Europe - Comments Off on IMF sends warning to Romanian government

The IMF delegation have wrapped their visit to Bucharest with criticism of the Romanian government.

The international lender warned the executive that the budget deficit might exceed the three per cent threshold in 2016, following the already trumpeted tax cuts and pay rises.

IMF officials suggested the executive to find the necessary means of bridging the budget gap in the years to come. At the end of the visit, mission chief Andrea Schaechter stated that “for 2016 and 2017, the adopted and intended policies-a combination of large tax cuts and rapid public wage increases-will push the fiscal deficit close to three per cent of GDP in 2016 and above this threshold in 2017 unless offsetting measures are identified or capital spending is again not fully carried out”.

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