BUCHAREST, Jan 30 (Reuters) - Romania's consolidated budget deficit fell to 5.68% of gross domestic product in cash terms last year from 6.7% in 2021, meeting the government's target, finance ministry data showed on Monday.
The European Union member state, which has set its deficit target at 4.4% of GDP this year, has committed to gradually lower its fiscal shortfall below the EU's 3% threshold by 2024 and to keep its public debt levels at around 50% of GDP.
Ratings agencies said last year that the government's ability to lower the fiscal shortfall was a key driver of its sovereign ratings. Fitch Ratings, Moody’s and S&P Global Ratings all have Romania on their lowest investment grade.
On Monday, Romania opened the books on its 2026 and 2029 Eurobonds, with interest exceeding 6 billion euros, Refinitiv news and market analysis service IFR said. The deal will be priced later in the day.
The country tapped $4 billion in 5-, 10- and 30-year dollar bonds earlier this month and has sold five times more domestic debt than planned, benefitting from strong buyer interest.
The budget shortfall in December widened from 4.2% of GDP at the end of November. In nominal terms, it stood at 81.01 billion lei ($17.96 billion).
Revenues amounted to 460.1 billion lei, or 32.2% of GDP, up 21.2% on the year, while spending stood at 541.09 billion lei. Public sector wages, pensions and social assistance amounted to just over 20% of GDP.
Interest rate costs amounted to 2% of GDP, or 29.09 billion lei, up 62% on the year reflecting decades-high inflation.
Investment spending, including EU-funded projects, stood at 72.53 billion lei, up 22.4% on the year. The government aims to use EU funds to drive up investment to 7.22% of GDP this year, or 112 billion lei. ($1 = 4.5115 lei) (Reporting by Luiza Ilie; Editing by Jan Harvey and Jonathan Oatis)
