The Government approved amendments to the 2020 state budget law. The revenues were reduced by 649.5 million lei to 37.2 billion lei, while the expenditure by 1.8 billion lei to 53.2 billion lei. The budget deficit was set at 15.9 billion, by 1.2 billion less than the deficit approved in July, IPN reports.

Prime Minister Ion Chicu said the diminution of the revenues and of the expenditure is due to the economic situation that was seriously affected by the pandemic. Many of the businesses stopped work. At the same time, the costs increased, primarily for helping the healthcare sector, for purchasing medical equipment, for opening new specialized wards in hospitals and, surely, for assisting categories of people who were seriously affected by the pandemic.

Premier Chicu noted the revenues from foreign assistance, including from funds allocated for implementing social and economic projects, declined by over 211 million lei.

The forecasts for 2020 show the GDP will decline by 1.5 percentage points, exports by 9.1 percentage points, while imports by 2.4 percentage points.

The balance of the state debt will represent 75 billion lei, down 4.1% or 3.2 billion lei. The balance of the external state debt will be 45 billion lei, down 6.6% or 3.2 billion lei from the initially approved value.

The offal said the amendment of the state budget and, respectively, of the mandatory health insurance funds and social insurance funds was needed in order to complete a new cooperation and assistance program with the IMF and the changes were discussed with representatives of the Fund.

The amendments are to be examined and adopted by Parliament.