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BUCHAREST, Jan 30 (Reuters) - Romania's consolidated
budget deficit fell to 5.68% of gross domestic product in cash
terms last year from 6.7% in 2021, meeting the government's
target, finance ministry data showed on Monday.
The European Union member state, which has set its deficit
target at 4.4% of GDP this year, has committed to gradually
lower its fiscal shortfall below the EU's 3% threshold by 2024
and to keep its public debt levels at around 50% of GDP.
Ratings agencies said last year that the government's
ability to lower the fiscal shortfall was a key driver of its
sovereign ratings. Fitch Ratings, Moody’s and S&P Global Ratings
all have Romania on their lowest investment grade.
On Monday, Romania opened the books on its 2026 and 2029
Eurobonds, with interest exceeding 6 billion euros, Refinitiv
news and market analysis service IFR said. The deal will be
priced later in the day.
The country tapped $4 billion in 5-, 10- and 30-year dollar
bonds earlier this month and has sold five times more domestic
debt than planned, benefitting from strong buyer interest.
The budget shortfall in December widened from 4.2% of GDP at
the end of November. In nominal terms, it stood at 81.01 billion
lei ($17.96 billion).
Revenues amounted to 460.1 billion lei, or 32.2% of GDP, up
21.2% on the year, while spending stood at 541.09 billion lei.
Public sector wages, pensions and social assistance amounted to
just over 20% of GDP.
Interest rate costs amounted to 2% of GDP, or 29.09 billion
lei, up 62% on the year reflecting decades-high inflation.
Investment spending, including EU-funded projects, stood at
72.53 billion lei, up 22.4% on the year. The government aims to
use EU funds to drive up investment to 7.22% of GDP this year,
or 112 billion lei.
($1 = 4.5115 lei)
(Reporting by Luiza Ilie; Editing by Jan Harvey and Jonathan
Oatis)
