Fiscal Council estimates, in a median scenario, an economic fall of 4-6% this year and a budget deficit of 8-9%

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The Fiscal Council estimates, in a median scenario, an economic fall of 4-6% this year and a budget deficit of 8-9%, said the president of the Fiscal Council, Daniel Dăianu.

“At the Fiscal Council we had reservations about 1.9% (official estimate of economic fall – e.n.). We prefer a median scenario, with a fall between 4% and 6%; there is a more severe one. Why the 1.9% decline is not plausible? Because we have a big drop in production. We also have a big drop in exports. We depend a lot on European production chains. We also started with a big handicap. Structural deficit of the public budget. The primary deficit (before debt service – e.n.) which is the largest in the European Union. And, hence, the great difficulties in financing the economy … the need for financing is very high. We have very limited room for maneuver to offset the crisis’ effects. And hence questions about what the deficits will be this year and in 2021, respectively. At the Fiscal Council we are working with a range of 8-9% budget deficit for the range of economic fall between 4 and 6% and a deficit of 9-10.4% for an economic fall of 8 and 9%, which includes the increase of the pension point by 40%,” said Dăianu, according to Agerpres.

The President of the Fiscal Council stated that if the increase in the pension point is lower, of 10%, for example, there would be a significant reduction of the budget deficit for this year, to 7.3 – 8.2%.

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