Prima pagină » English » EXCLUSIVE: Romanian Govt Slashes VAT Funds For Local Budgets

EXCLUSIVE: Romanian Govt Slashes VAT Funds For Local Budgets

Romania's Government will reduce the funds taken from VAT collections and transferred to local budgets to cover personnel expenses and bonuses in public schools, in addition to reducing the social aid budget.
EXCLUSIVE: Romanian Govt Slashes VAT Funds For Local Budgets
Florin Badescu
18 nov. 2010, 12:17, English

The draft of this year’s second budget revision, obtained by MEDIAFAX, says transfers from VAT collections, meant to cover salaries, bonuses, indemnities and other financial wage rights, as well as their social security contributions, in public pre-university education will be slashed by 247.1 million lei (EUR1=RON4.2950) to RON8.2 billion.

These cuts will not be applied in the counties Arad, Bihor, Bistrita-Nasaud, Brasov, Caras-Severin, Calarasi, Cluj, Dolj, Giurgiu, Ilfov, Mehedinti, Mures, Sibiu, Teleorman, Timis, Valcea, Vrancea and the city of Bucharest.

In addition, transfers from VAT collections meant to cover social aid and heating aid will be reduced by RON5.6 million, to RON725.6 million. This measure will apply only to the counties Bacau, Botosani, Dambovita, Gorj, Ialomita, Maramures, Neamt, Tulcea, Vaslui and the capital city Bucharest.

The draft revision will be approved by the Government on Monday. This year’s first budget revision was implemented in August.