Pensions and roads to benefit from budget correction

The Ministries of Labor and Transports will be the main winners after this year's second budgetary correction is approved by the government on Saturday. At the same time, additional funds will be allocated to the Ministry of Administration and Interior (to cover arrears electrical plants have to the state budget), to the Ministry of Justice (mainly for the full payment of salary rights by the end of 2009), and to the Ministry of Economy (to ensure the production of heavy water, the mine preservation and closure program, and to pay budgetary debts).

This budget correction requires that the budgets of 40 public institutions be sacrificed. Thus, the Ministry of Labor will receive RON 5.32 billion (€1.276 bln, computed at an average exchange rate estimated for 2009 of RON 4.2/€1) for paying pensions and unemployment benefits, and the Ministry of Transportation over RON 756 million (€180 mln) for investments in transportation infrastructure projects and subsidies for supporting public passenger railway transport, according to the draft "Ordinance regarding the correction of the state budget for 2009 and the correction of the social security state budget for 2009", sent by the Ministry of Finance to trade unions.

Until now, the only minister who publicly announced that he will request further funds for his institution's budget is Radu Berceanu, Minister of Transports. Of the funds allocated to the Ministry of Transports, almost half, namely RON 365 mln will go to the CFR state-owned railway company. Berceanu said yesterday, after meeting the trade unions, that he will request this amount for the correction, but that he was not sure if he will get it.

The ministries whose budgets were significantly cut are the Ministry of Regional Development and Housing (-€180 mln), the Ministry of Education (-€36.66 mln), and the Ministry of Health (-€26.9 mln). In spite of the information according to which there will be massive layoffs in the field of education, personnel-related expenses in this sector will be supplemented by some RON 23 mln (€5.4 mln). The document states that some €1.3 bln will be allocated from the state budget for the payment of pensions, considering that the revenues in the public pension system fell some €1.2 bln, according to this document. As far as the unemployment insurance budget is concerned, which has a present revenue shortfall of approximately €53 mln, this will be supplemented by €204.2 mln.

standard.money.ro