Romania's coalition govt to adopt 2023 budget draft by Oct 27 - PM

The government aims to publish the 2023 budget draft no later than October 20, Ciuca said in a live streamed statement ahead of a government meeting.

"We discussed and undertook to come up with the budget project in October, a budget project through which we will ensure the continuity of the investment programmes. We will also ensure the implementation of the programmes from the national resilience and recovery plan," Ciuca said.

"We will also ensure that we will be able to manage the budget deficit and inflation, simultaneously with finding budgetary resources for the increase of salaries and pensions starting next year. At the same time, we will ensure the necessary measures to protect the vulnerable population."

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

In 2021, Romania's economic output increased by 5.9%, compared to a 3.9% contraction in 2020.

Romania's economic output will rise by an estimated 3.5% in 2022, finance ministry analysts said earlier this month, improving their previous forecast for 2.9% growth.

Romania's Fiscal Council said in an analysis that the plausible cash budget deficit for this year would be around 7% of GDP, as revenues are overestimated. The Fiscal Council is a government body created in June 2010 which has the role of advising authorities in order to ensure a healthy budget.

In August, finance minister Adrian Caciu said the country will meet its deficit target of 5.84% of the projected GDP in 2022, despite warnings from the Fiscal Council of overestimated revenues.

(1 euro=4.9436 lei)