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BUCHAREST (Romania), January 6 (SeeNews) - Romania's president Klaus Iohannis has endorsed the country's 2020 state budget, the president's office said on Monday.
The budget bill is based on projections for economic growth of 4.1% and cash deficit equivalent to 3.59% of gross domestic product (GDP), above the EU’s 3% threshold.
GDP is expected to grow to 1.129 trillion lei ($236 billion/212 billion euro) next year, the budget bill text shows.
An average exchange rate of 4.75 lei per euro and a net monthly average monthly salary of 3.324 lei is projected in the draft.
The budget projects cash deficit at 3.59% of GDP, while the deficit under the European System of Accounts (ESA) standards is forecast at 3.58% of GDP. The ministry aims to narrow the gap to 1.94% by 2023, in order to return to the deficit target of below 3% envisaged in the Maastricht Treaty, the buget draft reads.
According to the 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.
Budget revenues are projected at 360.14 billion lei, or 31.89% of GDP, while expenditures are forecast at 400.69 billion lei, or 35.48% of GDP.
Investment spending is seen at 50.7 billion lei in 2020, or 4.5% of GDP.
Average inflation is forecast at 3.1% in 2020.
On December 23, Romania's government assumed responsibility before parliament for the 2020 budget bill in a move aimed at ensuring a fast-track approval of the bill.
The move was criticized by opposition Social Democrat Party (PSD), which will seek the opinion of the Constitutional Court on the matter.
According to PSD's chairman Marcel Ciolacu, PSD is considering to file a censure motion if other opposition parties join in.
(1 euro = 4.7760 lei)