PM: None Of Romania’s 2012 Budget Scenarios States Wage Cuts, Taxing Pensions

The Romanian Government will propose a prudent draft 2012 budget, which should protect Romania from major risks if the situation in Europe does not improve, and none of the budget scenarios states wage cuts or taxing pensions, Prime Minister Emil Boc said Tuesday.

53 views

The prime minister said investments, increasing the EU fund absorption rate and creating new jobs are the priorities of the state budget for 2012.

He added that the Government wants to keep the flat tax at 16% and increase the EU fund absorption rate to 20% in 2012.

President Traian Basescu said Monday Romania must use prudence in setting its budget targets for 2012, because the costs to finance the deficit have gone up due to the worsening situation in international markets. He said the government agreed that the 2012 budget deficit target should be lowered to below 3% of the gross domestic target.

Romania and its international financiers agreed upon a deficit target of 4.4% of GDP in 2011 and of around 3% of GDP in 2012.

The head of state also said the country's European fund absorption rate stands at 14.8% of the budget allotted by the European Union.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.