UPDATE: Romanian Govt Postpones Approval Of ’09 Budget For Next Wk – Sources

"The state budget draft was postponed, but the social security budget was approved," the sources said.

The Romanian 2009 budget draft targets a general consolidated budget deficit of 2% of gross domestic product, down from an estimated 2.3% gap this year.

According to the draft, budget revenues are estimated at 224.551 billion lei ($81.93 billion), or 38.8% of gross domestic product. Total expenses are seen at RON236.076 billion, or 40.8% of GDP.

For 2008, the government has set a budget-deficit target of 2.3% of GDP. Of total revenue, tax per profit collection is seen at RON18.589 billion, while value added tax collection will represent RON53.449 billion of revenues.

Social assistance expenses will be at RON61.475 billion, while expenses with personnel are seen at RON34.138 billion. The 2009 budget draft was built on an economic growth of 6% and an inflation rate of 4.5%. The National Prognosis Commission sees economic growth at 6.5% at the end of 2009 and inflation at 4.5%.

According to the draft, most of the funds from next year’s budget will go to education, transportation, health, defense, public order, national security and agriculture.

The education sector will receive 6% of GDP and an additional 0.8% of GDP for research. The health system will receive 3.9% of GDP. The public funds allocated for insurances and social assistance represent 11.3% of next year’s GDP.