Romania to increase public spending on infrastructure
Romania's Finance Ministry has announced a budget deficit of 1.7% of gross domestic product in 2006, but the government is expecting strong economic growth and asserted that it would continue to invest heavily in infrastructure improvements.
Romania's level of governmental spending certainly increased towards the end of 2006 with 18.1% of last year's total expenses being accrued in December.
According to government estimates, GDP rose by 8% in 2006 and it is expected that the level will track above 6%, with inflation of 4.5% this year.
Despite having a budget surplus entering December, Romania's deficit has more than doubled from 0.8% last year, and the International Monetary Fund has urged restrained spending to prevent this growing further.
The government has rejected the advice however, instead deciding to invest in education and infrastructure, building on a 25% increase in public spending last year.
Inflation in the country dropped to 4.9% in December last year, down from 8.9% the year before.
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