The government approved on Saturday the planned budgetary modifications, Romanian Finance ministry Gheorghe Pogea announced. As a direct consequence, Romania's GDP might drop by 8 to 8.5% late this year, Pogea said. The deficit will register, by the end of the year 7.3% of GDP, compared to 4.6%, as initially estimated. The inflation target is 4.3%.

Here are some of the most important declarations:

the budgetary modification amounts to 5.25 billion lei

VAT revenue dropped by 4 billion lei due to a drop of economic activities the state will insure necessary financial resources for pensions we decided to allocate another 900 million lei for infrastructure worksConsolidated budget revenues dropped this year by 17.4 billion lei (representing 3.5% of GDP) compared to initial estimates after the modifications, revenues amount to 31.6% of GDP and spending to 38.9% of GDPMinistries will have to cut spending according to the following list:

Development Ministry by 347 million lei Education Ministry by 154 million lei Finance Ministry by 205 million lei Health Ministry by 113 million lei Environment Ministry by 108 million lei Youth Ministry by 78 million lei Communications Ministry by 43 million lei Tourism Ministry by 30 million lei The government approved on Saturday the planned budgetary modifications, Romanian Finance ministry Gheorghe Pogea announced. As a direct consequence, Romania's GDP might drop by 8 to 8.5% late this year, Pogea said. The deficit will register, by the end of the year 7.3% of GDP, compared to 4.6%, as initially estimated. The inflation target is 4.3%.

Here are some of the most important declarations:

the budgetary modification amounts to 5.25 billion lei

VAT revenue dropped by 4 billion lei due to a drop of economic activities the state will insure necessary financial resources for pen