Romania’s Ruling Coalition Puts Off Approval Of Draft 2012 State Budget Until Next Week - Sources

According to the sources, several ministers, most of them from the ruling Democratic Union of Hungarians in Romania (UDMR), are not pleased with the distribution of funds, and most coalition members, including those belonging to the ruling Democratic Liberal Party, said the funds allotted to local authorities are scarce.

The draft state budget will be approved by the Executive at the end of next week, on November 25, and will be sent to parliament on November 28, the sources added.

The Government might also amend the local public finance law through an emergency ordinance which reduces the monthly share transferred to local authorities from income taxes by 5.5 percentage points, from 77% to 71.5%, and earnings from taxes on pension income will go to the state budget in their entirety.

The ruling coalition convened Wednesday for talks on the draft 2012 state budget and this year's second budget revision.

The Government will reduce the budgets of half of the country's ministries next year, including Education, Culture, Agriculture and Justice, as well as the budget of the Parliament, but will raise those of the Presidential Administration and intelligence services, reads the draft state budget for next year.

The document was debated by the Government last week. People familiar with the matter told MEDIAFAX at that time that UDMR ministers raised objections to the fund distribution, arguing that the funds allotted to culture and education are lower than those granted in 2011.

Moreover, people close to the matter said recently the Government will make a negative revision of the budget by the end of November and will reduce expenditure for most ministries. The Health Ministry will be among the few institutions to receive more funds, needed to pay its arrears.

Prime Minister Emil Boc said Tuesday evening the Government will revise the state budget next week at the latest, providing more funds to the ministries of Health, Culture and those running investments in infrastructure.

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