“The government will have trouble filling that gap. Authorities will either negotiate new targets with the IMF, or take other measures and, sadly, tax increases are considered,” Dumitru told a conference with analysts organized by Fondul Proprietatea.
He said the gap results from both the proposed reduction of the budget deficit to 1.4% of GDP (from 2.2% of GDP this year) and the measures adopted in the recent months, such as the cut of the social security contributions.
An IMF team will come to Bucharest early December to discuss the budget draft with the local authorities.