Revenue hike and expenditure stagnation shape 2012 budget

The state budget for next year has been allocated in the context of a deficit of RON 17.1 billion, with revenues of RON 95.65 billion lei, up 13.5 percent on the RON 84.26 billion of revenues projected for this year, and total expenses of RON 112.8 billion, similar to this year’s level

December 2011 - From the Print Edition

Given the deficit and growth targets agreed by the Government with the International Monetary Fund (IMF), the consolidated budget deficit should fall to RON 12.1 billion, RON 5 billion less than the state budget deficit.
IMF mission chief Jeffrey Franks said the projection for next year indicates GDP of RON 575 billion, while the deficit will not exceed 2.1 percent of GDP.
The cuts will largely be made from the budgets of the Ministry of Finance (approximately RON 1.1 billion) and the Ministry of Labor (RON 755 million), followed by Agriculture (RON 145 million), Environment (RON 80.4 million) and Education (RON 50 million).
The budget of the General Secretariat of Government will also be reduced by RON 15.4 million, while the Romanian Academy will lose RON 10.4 million. The majority of the additional funding will be awarded to the Ministry of Health (RON 1.23 billion) to finance existing health programs.
The Ministry of Transport will receive an extra RON 727 million, required to pay debts and expenses incurred through transportation facilities for pupils and students. Of this sum, RON 500 million will be used to increase the social capital of CFR Infrastructure.