Romania projects 4.4%/GDP gap, 2.8% economic growth in 2023 budget - govt

"Our idea was to draw up a realistic and balanced budget, taking into account the entire security context and the economic context," prime minister Nicolae Ciuca said ahead of a government meeting on Thursday.

"We will continue the economic support programmes, we will continue to prioritise maintaining jobs and protecting citizens from the effects of rising prices. We are also coming up with new measures to support vulnerable people," he added.

GDP is estimated to grow to 1.552 trillion lei ($301 billion/266 billion euro) next year, according to the 2023 draft budget published on the finance ministry's website on Tuesday.

Revenue is seen at 539.6 billion lei or 34.77% of GDP, whereas spending is seen at 596 billion lei, or 39% of GDP.

The budget deficit on both a cash basis and under the European System of Accounts (ESA) standards is estimated at 4.4% of GDP, or 77.9 billion lei.

Investment spending is seen at 112 billion lei in 2023, more than the 87 billion lei allocated for investment in the previous year.

After being approved by the government, the budget must be voted in parliament and endorsed by president Klaus Iohannis.

In November, the government lowered its 2022 budget deficit target to 5.74% of GDP from previously estimated 5.84% of GDP, in a revision of the budget for this year.

Romania closed 2021 with a consolidated budget deficit of 6.72%, compared to a budget gap of 9.61% in 2020.

Romania is in an excessive deficits procedure by the European Commission applicable since April 2020 because it has exceeded the EU's 3% budget deficit threshold set by the Maastricht Treaty.

(1 euro=4.9192 lei)