Anca Dragu: This year’s budget deficit is decent, considering the times we are in

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This year’s budget has a decent deficit for the times we are in, it ensures strong investments for the recovery of the economy, said Anca Dragu, the president of the Senate.

“This year’s budget deficit is projected at 7.16% of GDP. It is big for ordinary times, but we are not in ordinary times now. For nowadays, of pandemic and recovery after a severe economic and health crisis, this budget deficit ensures the return of Romania’s economy. If we look around us, this high level of deficit is in line with that of other European countries, with the EU in general, so we are not outside the group of EU countries. The good news is that this year’s budget deficit is under last year’s, when it reached almost 10% of GDP.

”Of course, last year’s high was unfortunately negatively affected by the pro-cyclical fiscal policy of the last three to four years. This year’s deficit is in line with what is happening in the neighboring countries of the EU economy and, most importantly, it highlights investments. We have investments of over 5 – 5.5% of GDP, which is a lot. Two-three years ago these figures were lower, at less than 2.5% of GDP. It is a budget with a decent deficit given the times we are in. It provides strong investments for recovery, on the one hand, but also to help different sectors of the economy hit by the crisis, I am referring here to services, tourism, all services affected by the pandemic,” said Anca Dragu, according to Agerpres.

The President of the Senate said she was optimistic about attracting money from the Resilience Fund and mentioned that good projects are being prepared, the digitalization of the public administration and good communication are desired. She said that everyone will be well informed in advance and Romania will have quick access to funds.

Asked about the areas in which investments will be made from these funds, she said that they will be “green”, respectively in energy, transport, agriculture. Green investments will hold 37% of the package. Digitalization will hold 20% of the investment package. These are sectors that ensure competitiveness, but also change the growth model targeted, to a growth that is green, inclusive, sustainable.

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