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August 12, 2022
ECONOMYFINANCE&BANKING

Gov’t approves draft budget for 2016


*GDP growth of 4.1 pc, base VAT lowered to 20 pc, budget deficit of almost 3 pc

The Government has approved the draft budget for 2016. In its essential coordinates, the 2016 budget brings together the goals that the previous Ponta Government had outlined ever since September-October. The strong elements of the GDP growth of 4 per cent in 2016 consist of the growth in domestic consumption and investments, backed by salary hikes, of the lowering of VAT and the better absorption of European funds.

Education, health, defence and internal affairs are the domains that will receive more funds next year. The smallest funds will be allocated to the Labour Ministry and the Transport Ministry.

The document is structured on a maximum budget deficit of 3 per cent of GDP, permitted by the European Union, and an economic growth level higher than the one registered in 2015. Data show that budget revenues will be higher by RON 3.6 bln compared to 2015, while the expenditures, hiked by approximately RON 13 bln, are expected to also cover the fiscal relaxation measures already approved.

The draft budget approved by Government will be forwarded to Parliament for approval. A timetable for the Parliamentary debates has not been set yet, but this important draft will probably be analyzed and approved next week.
Unusual for the governmental scene was the fact that the draft budget was the announced topic of a public debate to which NGOs and citizens were invited. The meeting between various Government officials and citizens however took place post-factum, after the Government had approved the draft budget.

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