Romania, which joined the European Union last year, is aiming for a budget deficit equivalent to 2.3% of gross domestic product (GDP) in 2008, but the European Commission said earlier this week it has projected a deficit of 3.5% of GDP for the country, due to its persistently loose fiscal policy.
The cutbacks will not affect the payment of salaries and pensions, the government's spokeswoman, Camelia Spataru, said.
The government press release said a prudent approach will be taken towards new hirings in the adminstration and towards the handing out of bonuses to employees. The spending of budget reserves will be limited to strictly necessary objectives such as urgent or emergency spending, as a measure to keep targets intact, the statement said.
Romania ran a budget gap of 1.08% of GDP through August and local media have quoted Finance and Economy Minister Varujan Vosganian as saying the deficit had widened to 1.5% of GDP at end-October.