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Romania’s Consolidated Budget Rev Cut By RON18.8B, Expenses Cut By RON6.2B

Romania's estimated consolidated budget revenues will be cut by 18.83 billion lei (EUR1=RON4.1893) while expenses will be cut by RON6.28 billion, trough the budget revision and the introduction of new financial-budgetary measures, according to a government document.
Romania’s Consolidated Budget Rev Cut By RON18.8B, Expenses Cut By RON6.2B
06 apr. 2009, 11:17, English

State budget revenues will be down by RON12.11 billion compared with the initial forecast, while local budgets will get RON2.35 billion less, as well as the social state insurance budget, that will receive revenues lower by RON234 million.

The unemployment insurance budget will also be decreased by RON131.1 million, the national fund for social health insurance will be reduced by RON594.5 million, own revenues will decrease by RON1.3 billion, while external non-reimbursable funds will decrease by RON757.7 million.

Expense cuts will be operated at the state budget (-RON1.89 billion), local budgets (-RON1.54 billion), state social insurance budget (-RON4.1 million), the national social health insurance fund (-RON8.9 million), own revenues (-RON1.05 billion), non-reimbursable external funds (-RON757.7 million), among others.

However, expenses of the unemployment insurance budget will increase by RON328 million.

Thus, the resulted general consolidated budget deficit will reach RON12.54 billion.

The current version of the consolidated budget indicates total expenses worth RON205.5 billion while the current state budget includes total revenues of RON75.6 billion and expenses worth RON94.8 billion.

The 2009 budget will be revised in the upcoming period, and will be based on a deficit of 4.6% of the GDP, compared with 2% initially decided, given a GDP adjustment from RON579 billion to RON531 billion.

The current budget was based on a deficit of 2% of the GDP and a 2.5% economic growth.

Official sources told MEDIAFAX that the budget deficit negotiated with the IMF was established at RON24.36 billion this year, given annual budget revenues of RON166.72 billion without including non-reimbursable external sums, and primary expenses worth RON182.72 billion.

The Romanian government is preparing a set of measures which includes, among others, the budget revision, the introduction of the lump-sum tax, the limiting of bonuses and indemnities and freezing jobs in the public sector.