Romania certain to meet 2017 budget gap target - fin min

"The deficit target of 2.96% of the annual GDP set for 2017 is not at risk. The difference between the balances mentioned by Eurostat and the monthly data published on our website stem both from the calculation methodology, namely the European System of Accounts (ESA) using the accrual method and from the impact generated by the calculation methodology of seasonally adjusted quarterly deficits," the ministry said in a press release.

On Monday, the European Office of Statistics (Eurostat) published data showing that Romania had the bloc's highest consolidated budget deficit in the second quarter, equivalent to 4.1% of GDP.

However, finance ministry data showed that Romania's consolidated budget deficit stood at 0.96% of GDP in the second quarter of the year.

In support of its statement, the ministry released earlier that planned budget performance data for the first nine months of the year, showing that the budget deficit increased to 0.81% of the projected 2017 gross domestic product (GDP) in the first nine months of 2017, up from 0.49% a year earlier.

Romania targets a consolidated budget gap equivalent to 2.96% of GDP on a cash basis in 2017, just below the EU's 3% ceiling. According to the EU's Maastricht treaty signed in 1992, the ratio of the annual general government deficit relative to GDP at market prices must not exceed 3% at the end of the preceding fiscal year.

Romania's consolidated budget showed a deficit equivalent to 2.41% of GDP last year, compared to a shortfall of 10.3 billion lei, or 1.47% of GDP in 2015.

At the beginning of October, the International Monetary Fund (IMF) said that Romania's current account deficit is expected to decrease to 2.9% of GDP in 2018 from 3% of GDP projected for 2017.

Also in October, Standard & Poor's said that Romania's budget and trade deficits will widen due to the consumption-focused growth.

In July, Fitch Ratings too warned on a growing budget deficit and economy overheating. "Romania is at risk of re-entering the EU Excessive Deficit Procedure this year, having only exited it in 2013," the rating agency warned.

(1 euro=4.5976 lei)