The budget rectification project is to be adopted by the end of this week, given the multiple requests and financing needs addressed to the Ministry of Finance in the context of deficit pressures, minister Alexandru Nazare announced, according to Economica.net. The budget revision draft was initially announced for the evening of September 25 and rescheduled for September 29.
The revised deficit was announced at 8.4% of GDP (up from 7%), based on assumptions of 0.6% GDP growth – a quarter of the initial 2.5% projection used for the construction of the budget planning in January. The European Commission has reportedly agreed on the wider deficit this year.
The supplementary expenditures, some EUR 5 billion, were not budgeted when the initial planning was inked in January [by the previous government], president Nicusor Dan explained, cited by Cursdeguvernare.ro. “In short, this will be the rectification,” president Dan concluded.
Finance minister Nazare mentioned RON 80 billion supplementary requests, saying that not all of them can be responded to. However, he assured that RON 150 billion will be maintained for investments and recalled that the essential expenditures of pensions, salaries, and healthcare spending, investments are being covered.
The Ministry of Finance also deferred the publication of the budget execution for the first eight months of the year, which was expected for September 25.
“I discussed with the prime minister the updated calendar of the budget rectification, following the multiple requests and financing needs addressed to the Ministry of Finance. […] On Monday [September 29], we will publish the draft for public consultation, with the dialogue to continue in the coming days, and by the end of next week, the draft rectification will be adopted,” the finance minister wrote on his Facebook page.
Prime minister Bolojan announced on Wednesday, September 24, that Romania has agreed with the European Commission to end the year with a deficit of 8.4% of GDP, and the draft budget amendment will be published in decision-making transparency for consultation no later than Friday.
iulian@romania-insider.com
(Photo source: Alexandru Marinescu/Dreamstime.com)
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