Romanian Prime Min To Grant Mins New Funds At The Second Budget Revision

The Ministry of Justice will receive the money needed for the good functioning of courts, while the Labor Ministry will benefit from higher funds to pay for the social obligations by the end of 2009, Boc said. 

The second budget revision in 2009, planned for August, regards the adjustment of the deficit, according to the agreement signed with the International Monetary Fund (IMF) and the European Commission, from 4.6% to 7.3% of the gross domestic product.

According to finance minister Gheorghe Pogea, the next budget revision will cut expenses by RON4.5 billion (EUR1=RON4.2298), meaning 0.9% of the gross domestic product.

The budget revision in April 2009 came after Romania signed the agreement with the IMF and the European Commission.

The IMF agreed on an increase of 7.3% of the budget deficit for 2009, from the 4.6% budget deficit negotiated in March.

According to the IMF, the new budget deficit target comes as a result of the RON17.5 billion decrease of the budgetary revenues.

Pogea estimates the revenues coming from the VAT will fall back by RON4.3 billion, the social contributions by 5.5 billion and the non-fiscal revenues by 4.2 billion.