Romanian Govt Performs Second Budget Revision In '09

The Romanian Government performed Saturday the second budget revision for this year, after the International Monetary Fund agreed to allow a budget gap increase to 7.3% in 2009, from the previous projection of 4.6%, negotiated in March for the agreement concluded by authorities with the IMF.

The raising of the budget deficit target comes as result of a decrease in consolidate budget revenues this year by 17.4 billion lei (3.5% of the GDP; EUR1=RON4.2157) as opposed to the initial program, due to a decrease in VAT revenues (RON4 billion), social contributions (some RON5 billion) and non-fiscal revenues (RON4.1 billion).

Consolidated budget expenses are reduced by RON5.2 billion (1.1% of the GDP). In the state budget, expenses are increased by RON5 billion, the state insurance budget is increased by RON487 million while the unemployment budget grows by RON895 million, "in order to cover any increase in the number of unemployed people," said finance minister Gheorghe Pogea.

The infrastructure projects budget received an additional RON900 million, where RON500 million went to the road infrastructure and RON400 million went to school infrastructure and county roads.

The government guarantee ceiling was increased by EUR400 million for the cofinancing of projects funded with EU or reimbursable sums.

Pensions received an additional RON487 million, while the state budget will grant subsidy worth RON5.5 billion to the pension budget, to counter the lack of funds.

Overall, fund reductions for ministries reach RON1.4 billion, with lower funds allotted to the Ministry of Regional Development and Housing (minus RON347 million), the Ministry of Education (-RON154 million), the Ministry of Public Finance (-RON205 million), the Ministry of Health (-RON113 million), the Ministry of the Environment (-RON108 million), the Ministry of Youth and Sports (-RON78 million), the Ministry of Communications (-RON43 de million), the Ministry of Tourism (-RON30 million), the Secretariat General of the Government (-RON66 million), other fund users of the state budget (-RON151 million).

mediafax.ro