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Gov’t approves second budget adjustment this year . FinMin Misa: Second budget rectification positive, aimed at meeting 2.96pct deficit

MAI, Education, Health, Justice, and Transport ministries to receive funds

 

On Wednesday, the Government approved the second budget adjustment this year, with the Interior Ministry (MAI), Labour Ministry, Education Ministry, Health Ministry, Justice Ministry, and Transport Ministry being set to receive extra funds, most of them for the payment of salary or pension rights. The funds allocated to the Environment, Culture, Finance, Business Environment, and Regional Development ministries will be cut. Premier Mihai Tudose stated that Romania’s economic growth rate is the third-highest in the world.

“Very good news that you know, or bad news for those who wanted our tragic and painful demise: 8.8 [percent] economic growth in the third quarter compared to the third quarter last year, which makes us optimistic for an overall 2017 growth of up to 6 percent. Not only are we not dead, like some wanted, but quite the contrary, we are enviable, third in the world. Yet another piece of bad news for those who do not love us, good news for those of good faith: this year’s budget exercise will end below [a deficit of] 3 percent and we are not doing very bad in view of next year either, on the contrary, the figures are looking very good,” Premier Mihai Tudose stated at the start of the Government meeting.

 

FinMin Misa: Second budget rectification positive, aimed at meeting 2.96pct deficit

 

The second budget rectification this year is positive and was aimed at meeting the 2.96pct deficit, Minister of Public Finance Ionut Misa said on Wednesday at the start of the Government’s sitting.

“As to the budget rectification, this is the second one, and is also positive. I want to mention that this rectification was based on consultations with all the ministries and was aimed at meeting a deficit of 2.96pct of GDP, and we have succeeded in this. The economic results so far are a reason for the possibility of achieving an economic growth of 6.1pct compared to 5.6pct as originally estimated. Moreover, the GDP rose from the estimated 837.2 billion lei to 842.5 billion lei,” said the minister of public finance at the request of Prime Minister Mihai Tudose.

He emphasised that “at this moment, Romania is first in Europe in terms of economic growth” and pointed out that the general consolidated budget’s revenues have grown by RON 280.2 million, and expenditures have grown by RON 503.8 million.

Misa pointed out that the extra funds will go to: local budgets – RON 611.9 million; Labour Ministry – RON 630.9 million; Interior Ministry – RON 363.5 million; Transport Ministry – RON 293.9 million; Health Ministry – RON 281 million; Justice Ministry – RON 232 million; Education Ministry – RON 30 million; Health Insurance Fund – RON 269.7 million; Social Insurance Public Fund – RON 325 million.

Budget cuts will be operated at: Business Environment Ministry – RON 78.5 million; Finance Ministry – RON 52.9 million; Regional Development Ministry – RON 43.7 million, but an extra RON 71.5 million was allocated for the National Programme for Local Development (PNDL); Culture Ministry – RON 27.8 million; Environment Ministry – RON 27.4 million.

 

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