The Government prepares the second positive budget revision, based on an economic growth of 6.1%

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What ministries will receive extra money? 

 

The Finance Ministry announced on Friday that the budget revision finalized in November this year is a positive one, it relies on previous consultations with all the ministries and it was made to fit in the deficit of 2.96% of GDP.

“The economic results achieved until today argue the possibility to have an economic growth of 6.1% compared to 5.6% which was estimated when the first budget revision was performed, and to 5.2%, which was estimated when the 2017 budget was drafted. Thus, the estimated nominal GDP increased from RON 837.2 billion to RON 842.5 billion” reads a press release issued by the Finance Ministry.

The adjustment of the revenues and expenditures of the general consolidated budget for 2017 is shown below.

 

Revenues

 

The balance of the revenues of the general consolidated budget will increase by RON 280.2 million.

The budgets that form the general consolidated budget recorded revenue increases (for instance: the social insurance budgets + RON 325.0 million, the budget of the Unique National Social Health Insurance Fund + RON 269.7 million, the local budgets + 1,020.8 million), while other budgets recorded revenue decreases (for instance: the state budget – RON 655.5 million).

 

Expenditures

 

The balance of the expenditures of the general consolidated budget will increase by RON 503.8 million.

 

Extra funds have been ensured as follows:

 

RON 611.9 million have been allocated to the local budget for:

 

  • the payment of the amounts provided by court decisions granting salary rights established in the favor of the pre-university educational state units, + RON 550 million
  • financing the child protection system + RON 61 million
  • financing the accredited private or confessional educational system + RON 0.9 million.

 

For the Ministry of Labor and Social Justice: + RON 630.9 million per balance; RON 537 million have been additionally granted for the payment of the rights of the persons with disabilities, state allowances for children, child-raising allowances and social health insurance contributions related to these allowances, and RON 115.9 million for the increase of the transfers for balancing the state social insurance budget; savings have been also identified to some categories of expenditures, therefore  RON 22 million have been reduced.

For the Ministry of Internal Affairs: + RON 363.5 million per balance; RON 400 million have been additionally granted for the payment of the state military pensions to be received by the retired militaries and policemen whose employment agreement ended in 2017, as well as for the payment of the differences resulting from the recalculation of the pension rights; the amount of RON 36.5 million has been reduced due to the savings recorded for certain categories of expenditures.

For the Ministry of Transport: + RON 293.9 million per balance; RON 345.6 million have been additionally granted to ensure the national co-financing and the non-eligible expenses related to the projects financed from post-accession non-reimbursable external funds for the period 2014-2020; the amount of RON 51.7 million related to the savings recorded for certain categories of expenditures has been reduced.

For the Ministry of Health: + RON 281.0 million per balance; RON 287.2 million have been additionally granted mainly for the health actions and programs, for the payment of the resident physicians, medical staff in the emergency reception facilities and for increasing the transfers to the budget of the Unique National Social Health Insurance Fund; the amount of RON 6.2 million related to the savings recorded for certain categories of expenditures has been reduced.

For the Ministry of Justice: RON + 232.1 million per balance; the amount of RON 240.2 million has been additionally granted for the payment of the instalments related to the year 2017 for the court decisions granting salary rights in the favor of the staff working within the judiciary; the amount of RON 8.1 million corresponding to the savings recorded for certain categories of expenditures has been reduced.

For the Ministry of National Education: + RON 30.0 million per balance; RON 50 million have been granted for the payment of the court decisions granting salary rights to the staff in the state university educational institutions; the amount of RON 20 million related to the savings recorded for certain categories of expenditures has been reduced.

The budget of the Unique National Social Health Insurance Fund: + RON 269.7 million, for health services and medicines.

The State Social Insurance Budget: + RON 323 million to provide the necessary for the payment of the social insurance pensions.

Decreases have been made to the Ministry for Business Environment, Commerce and Entrepreneurship (- RON 78.5 million), the Ministry of Public Finance (- RON 51.9 million), the Ministry of Regional Development, Public Administration and European Funds (- RON 43.7 million per balance, but RON 71.5 million have been additionally allocated for PNDL), the Ministry of Culture and National Identity (- RON 27.8 million), the Ministry of Environment (- RON 27.4 million), mainly considering the execution level of the expenditures.

“The draft of the Emergency Ordinance on the second budget revision for the year 2017 can be seen on the institution’s website and it will be included on the agenda of the next Government’s meeting” according to the Finance Ministry.