BUSINESS

Vosganian: Local administrations have money for salaries only until August

The Boc administration has incomes 7 pc lower, but expenses 12 pc higher, and this explains why the deficit is so high, former Finance Minister Varujan Vosganian declared, quoted by Realitatea.net. “They will give up spending money on investments so that they can pay salaries and pensions. Based on the current evolution, it is most likely to have a deficit of the consolidated budget between 7 and 8 pc this year,” Varujan Vosganian said. Many expenses weren’t put in the budget and local administrations only have money until August, the former minister warned.

The deficit of Romania’s consolidated general budget deepened this month to RON 9.357 bln, equivalent to 1.76 pc of the gross domestic product (GDP), above the maximum level of 1.7 pc forecast early in May, according to data recently released by the Ministry of Public Finance. At end-March, budget deficit stood at RON 7.925 bln, i.e. 1.5 pc of the GDP. The GDP forecast released by the Finance Ministry amounts to RON 531.25 bln for 2009. Budget incomes registered an increase in April compared to the first three months of the year, up by 25.6 pc from the previous month, to RON 15.2 bln. Incomes to the consolidated general budget reached RON 14.8 bln In January, RON 11.2 bln in February and RON 12.1 bln in March.

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