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Romanian Govt Cuts RON2B From ’08 Budget Exp, Redirects Funds To Pensions, Aids

The Romanian Government will cut more than 2 billion lei (EUR1=RON 3.7985) from 2008's budget expenses of 18 ministries and public institutions, and the funds will be mainly redirected to the Labor Ministry for pensions and state aids, sources told MEDIAFAX Monday.
Romanian Govt Cuts RON2B From ’08 Budget Exp, Redirects Funds To Pensions, Aids
24 nov. 2008, 18:40, English

Thus, the Education Ministry’s budget will be subject to a cut of RON570 million, Ministry of Agriculture’s budget will be cut by RON430 million, Ministry of Transports will shed off RON420 million from its expenses, the Defense Ministry expenses will be reduced by RON200 million, Ministry for Development, Public Works and Housing’s budget will be cut by RON166 million, while Ministry of Environment’s budget will be RON100 million lower.
 
Also, the total expenses of Government General Secretariat will be down RON30 million, Ministry of Foreign Affairs down RON25 million, National Sanitary Veterinary Authority and Food Safety down RON20 million, Romanian Television Company down RON19.5 million, Premier’s Chancellery down RON15 million, the Senate down RON13 million, the expenses of Ministry for Small and Medium Sized Enterprises, Commerce, Tourism and Liberal Trades will be down RON10 million, the Chamber of Deputies down RON10 million, Service for Protection and Security with RON10 million, Ministry for Communications and Information Technology down RON6 million, High Court of Cassation and Justice down RON5 million, while the budget of the Academy of Science People in Romania will be down RON2.8 million.
 
The funds will mainly go to the Labor Ministry, with around RON1 billion, to pay social care rights for December. Also, the Health Ministry will receive RON70 million for pays to the staff in the public health sector, the Public Ministry with receive RON10 million to ensure its current expenses by year-end, Romanian privatization Authority AVAS will receive RON2.2 million, to pay wages in the defense sector, while Economy Ministry will receive RON314.5 million, to pay interests of the direct internal debt, fees and other internal loans related costs.
 
The remaining RON570 million will go for descentralized expenses in counties, communes, cities, towns and sectors in Bucharest capital city.
 
The fund-redirection will have no impact upon the budget deficit.
 
Early September, the Romanian Government has approved this year’s third budget revision, maintaining the budget deficit limit at 2.3% of gross domestic product, but increased its GDP forecast to RON495 billion from RON475 billion.