The nation’s ESA budget deficit targets were also modified to 2.8% of GDP in 2012 and 2.2% of GDP next year, from 2.3% of GDP and 1.5% of GDP, respectively.
In cash terms, Romanian government estimates a budget deficit of 2.2% of GDP in 2012, slightly wider from 1.9% of GDP initially envisaged.
Romania and the International Monetary Fund last week agreed upon a higher budget deficit target for 2012, which will allow the government to partly finance a 15% wage restoration in the public sector.
Wages in the public sector were reduced by 25% in July 2010, as part of a government austerity package aimed to cut spending and bolster revenue. The authorities in Bucharest allowed a 15% wage restoration last year and announced a further 8% pay raise as of June 2012.