Romania to boost investment spending to 6.7% of GDP in 2022-FinMin strategy – Reuters
BUCHAREST, Dec 19 (Reuters) – European Union recovery funds will help Romania boost its investment spending to 6.7% of gross domestic product (GDP) in 2022 from an estimated 5.6% this year, the finance ministry said.
The ministry’s 2022-2024 budget strategy, released late on Saturday, estimates investment could reach 7.7% of GDP by 2024 and help the EU state’s economy grow 5% per year on average.
Romania’s infrastructure is among the EU’s least developed, with massive investment needs in transport, healthcare and education, but some analysts have said the country’s poor institutional capacity could mean it will struggle to make full use of the bloc’s recovery funds.
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Romania’s 2022 budget plan, which has yet to be approved, will be based on an economic growth assumption of 4.6% and target a cash deficit of 5.8% of GDP, as agreed with Brussels, the ministry said.
The country, which expects to run a deficit of 7.1% this year, has committed to gradually lower its fiscal shortfall below the EU’s 3% threshold by 2024 and keep its public debt levels around 50% of GDP.
In 2022 the finance ministry expects budget revenues worth 33.4% of GDP, or 439.9 …….