5 July 15:05
Radu Burnete underlines the risks of a large budget deficit, which could lead to higher interest expenditure than defense, education or health budgets.
Raluca Niculae
Current Affairs
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Radu Burnete, advisor to President Nicușor Dan, draws attention to the budget deficit of more than 9% of GDP, which could lead Romania to pay 4-5% of GDP annually on interest alone. This would exceed budgets for essential sectors. Burnete emphasizes that to avoid a deterioration in the financial situation, the authorities must take effective measures. He also points out that talks with rating agencies are more difficult than those with the European Commission, and the flexibility the president has achieved in negotiations with Brussels is crucial for stabilizing the economy.
Sources
Burnete: În acest ritm, o să cheltuim 4-5% din PIB pe dobânzi. Dacă nu ne vom mai putea împrumuta, tăierile vor fi mult mai mari
Burnete: O să ajungem foarte repede să cheltuim 4-5% din PIB pe dobânzi, în acest ritm de deficit
Consilier prezidențial: Dacă nu reduce deficitul bugetar, România riscă să plătească mai mult pe dobânzi la datorie decât pe educație, sănătate sau apărare
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