Bogdan Balthazar: Most realistic level of deficit will be 7 pct

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Bogdan Balthazar, financial counselor, on Sunday told, in exclusivity, that the most realistic budget deficit level to be negotiated with the International Monetary Fund (IMF) will be 7-7.5 percent and that the measure to cut the personnel in the public administration by 20 percent it will be a correct and necessary one.

‘The 9 percent figure, one of the many figures that have been circulating for the budget deficit by end-2009, is too high and it should be forgotten.”
The negotiation with the IMF of a new budget deficit needs to have a result to be, on one hand, stimulating, and on the other hand to represent a constraint for the Romanian Government.

It should not be 4.6 figure, for we are talking about the deficit to reflect the situation in year-end, and this figure needs to represent a constraint for the Government to make efforts to observe it.

Any realistic forecast shows that the current level of the deficit cannot be maintained, although Romania managed to observe the deficit in the first six months of the year.

In my opinion, it managed to do so in a forced manner, so that it is impossible we continue to believe we would be able to observe this deficit in the first quarter of 2009 too.
That’s why, I believe a deficit of 7 – maximum 7.5 percent should be imposed by the Romanian side.

With regards to the cut to be operated in the expenditures, by cutting 20 percent of the personnel in public administration, I think this could be a necessary measure. The unemployment aids the Romanian state will have to pay would represent a smaller amount than the salaries and bonuses they need to pay now’.

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