The government has started to cut spending by 20 billion lei, which was confirmed by Finance Minister Adrian Cachiu after revealing that they made a mistake in the 2023 budget, as HotNews.ro also revealed.

Eugene Redulescu, director of the BNR Stability Office, says the same: “At the moment, you see that the political discussions are connected precisely with the fact that the budget deficit, which is already very large, seems even larger in reality, because the revenues were overstated and expenditures understated in the current budget.”

According to him, Romania’s exchange rate risks are particularly high, as we face a double deficit: a current account deficit and a budget deficit.

“According to the current account, we passed 9% of GDP, this is a very large figure. This is the largest even compared to neighboring countries,” he explained.

• The other day someone asked: how to explain that Hungary borrows cheaper than Romania?

• This is explained by the fact that Hungary’s current account deficit is smaller than Romania’s. This is about 7%, taking into account the fact that they have a trade balance surplus, and we have a chronic deficit. It seems to be moving in the wrong direction.

“The main reason for the external deficit is, in my opinion, the state deficit. We have a government deficit, which before the pandemic brought us to a situation of disruption. Only the fact that the pandemic came led to the stoppage of the procedure. The situation remains particularly critical,” Eugene Redulescu also said.

• At the moment, you see that the political debate is precisely about the fact that the budget deficit, which is already very large, actually appears to be even larger, because in the current budget revenues are overstated and expenditures are understated. in force

Eugene Redulescu supports the abolition of special pensions

In his opinion, PNRR represents an extraordinary mouth of oxygen that Romania could have.

“The measures that need to be taken are neither popular nor simple. Some measures, which are difficult to accept, would be very popular, such as the reduction, if not the complete abolition of special pensions,” he said.

In any case, it is about “reducing the burden they represent, which is now a big question mark: the way the laws are changed is cosmetic, not fundamental.”

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