Romania budget surplus narrows

Romania ran a consolidated budget surplus of 0.1 percent of gross domestic product for the first two months, smaller than the 0.6 percent surplus recorded at the end of January, the finance ministry said on Friday. The European Union state sharply reduced its budget and current account deficits under a series of aid deals led by the International Monetary Fund during 2009-2015.
But a series of tax cuts and public sector wage hikes enforced ahead of two elections later this year are straining public finances and the government expects a shortfall of just under 3 percent of GDP this year. In nominal terms, the January-February surplus stood at 788 million lei ($197.22 million). Revenues amounted to 35.4 billion lei, or 4.7 percent of GDP, while spending reached 34.6 billion.