The foreign delegation argued that this would bring Romania’s budget deficit above the limit of 3% of the GDP, under European regulations, the sources said.

Agriculture Minister Daniel Constantin said in July that the 2013 state budget will surely provide VAT of 9% on food, if the measure is not implemented this year.

Prime Minister Victor Ponta announced in May that the Government would introduce three income tax brackets next year, if the Social-Liberal Union would win the general elections this fall.

The Government has revised down its economic growth forecast to 1.2% in 2012 from 1.5% previously, according to a draft of this year’s first budget revision.

The delegation experts have also analyzed the macroeconomic framework that will serve as the basis for next year’s state budget and expect Romania’s GDP to grow by 2.5% next year, lower than the National Prognosis Commission’s estimate of 3.1%, people close to the matter told MEDIAFAX.

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