12.6 C
Bucharest
May 15, 2021
ECONOMY FINANCE&BANKING

Finance Ministry launches second budget adjustment of 2016. Priority domains

The Public Finance Ministry (MFP) proposes a second budget adjustment this year, “bearing in mind that the revenues of the general consolidated budget have grown by RON 306 million and that the expenditures of the general consolidated budget have grown by the same amount,” the MFP announced last Friday.

The budget adjustment is also based on “maintaining the budget deficit target at 2.8 percent of GDP in cash terms, namely 2.95 percent of GDP in line with ESA methodology.” The analysis of the budget results registered from January 1st to September 30th “shows a budget deficit of RON 3.7 billion, namely 0.49 percent of GDP,” the MFP points out.

The budget adjustment was meant to reallocate funds that can no longer be used by the end of 2016, in order to ensure the financing of ongoing programmes.

The priority domains of this budget adjustment were “healthcare, investments, agriculture subsidies and the financing of projects and policies in the education and welfare domains, financed by the local public administrations, projects and policies such as the “Hot Meal” pilot-programme, the child protection system and the “Fruits in Schools” programme.

Commitment appropriations worth RON 2.21 billion have been allocated for the budget of the National Health Insurance Office (CNAS), in order for it to award new cost-volume-result contracts for the chronic hepatitis therapeutic domain. These allocations will allow patients diagnosed with stage F4 hepatic cirrhosis to continue their treatment, and will allow for the treatment programme to be expanded for patients diagnosed with stage F2 and F3 hepatic cirrhosis. The Health Ministry has already sent the necessary paperwork to CNAS. “On their basis, the Office will start negotiating with pharmaceutical drug producers the signing of the cost-volume-result contracts. The signing of the contracts in this formula allows for a judicious use of health insurance budget funds because CNAS reimburses the cost of the treatments only for patients who were cured as a result of the therapy,” MFP adds.

The sum of RON 1.25 billion was earmarked for the Regional Development Ministry’s National Local Development Programme. The sum will cover the payments required by the end of the year by school and road infrastructure development projects. Another RON 47.9 million were re-allocated to finance the loan agreement dubbed “Integrated rehabilitation of water supply and sewerage systems and of water treatment plants in localities with a population of up to 50,000 people.” The sum will be used to complete the project financed with non-reimbursable external loans.

The sum of RON 1.09 billion has been earmarked for direct payment schemes in 2016. Likewise, the ministry has redistributed from its own budget RON 85.7 million for the payment of agriculture subsidies.

The sum of RON 1.7 billion was earmarked for local budgets, sum recouped from the valued added tax on financing the local public administration’s expenditures. The money will be used thus:

  • RON 170 million for the personnel expenditures of schools and high schools
  • RON 14.7 million for the “Hot Meal” pilot-programme
  • RON 101.5 million for the child protection system
  • RON 74.7 million for social assistance centres for persons with disabilities
  • RON 392.3 million for paying the personal helpers of persons with disabilities
  • RON 4.1 million for the “Fruits in Schools” programme
  • RON 6.9 million for financing the rights of special needs children
  • RON 938.3 million for the balancing of local budgets

The sum of RON 222.4 million was earmarked for the Energy Ministry, of which RON 200 million for the state aid scheme for the closing of two mines that are part of the Hunedoara Energy Holding.

The sums of RON 75.5 million was allocated for the Communications Ministry, mainly in order to hike the registered capital of the Romanian Post.

The sum of RON 336.7 million was allocated to the budgets of the Interior Ministry, Defence Ministry and Romanian Intelligence Service, for the payment of recalculated military pensions and for the reimbursement of the difference between the pensions owed for December 2010 and those established based on law no.119/2010.

The Labour Ministry received RON 142.4 million for the full payment of social security rights (child rearing indemnities, welfare, child benefits, indemnities for persons with disabilities).

The sum of RON 66.8 million was redistributed to the Foreign Affairs Ministry, mainly for the payment of contributions and membership fees owed to the international bodies the institution is a member of.

The sums shaved off come from the savings registered by ministries following the analysis of payment carried out in the first 10 months. Some examples: the Public Finance Ministry saved RON 1.18 billion. The sum comes from interests and from Romania’s contribution to the EU budgets, but also from savings on personnel expenditures, civil damage payments and capital expenditures. Savings of RON 254 million were identified within the budget of the Transport Ministry, mainly when it comes to investments made by companies, non-eligible ISPA expenditures and railway infrastructure maintenance works. On the other hand, allocations were made to cover the sums needed to cover the discounts that some social categories benefit from and to hike the registered capital of Metrorex. The Defence Ministry has identified savings of RON 359.8 million, money that can no longer be used for goods and services expenditures and capital expenditures. Likewise, the proposal made is to hike the commitment appropriations by RON 5 billion in order to start the procurement of defence equipment. The Environment Ministry registered savings of RON 49.6 million on projects financed with European grants.

The savings registered by the Economy Ministry total RON 35.4 million, mainly on projects financed with European grants and programmes meant to stimulate small and medium companies.

The Justice Ministry, as main credit release authority, identified savings worth RON 33.6 million, the MFP communique also showed.

Related posts

Abris exits Polish locomotive leasing business Cargounit, after helping drive threefold increase in revenues

NINE O'CLOCK

Banca Transilvania, IBM Global Business Services and QUALITANCE partner in digital transformation using the FlowX.AI technology platform

NINE O'CLOCK

Steven van Groningen resigns as member of the board of nominees of Fondul Proprietatea

NINE O'CLOCK